Trade Barriers and Participation in the Global Value Chain: An Empirical Study Based on Anti‐Dumping Toward China

21 Pages Posted: 22 Mar 2019

See all articles by Xiaosong Wang

Xiaosong Wang

Renmin University of China - School of Economics

Zhexi Liu

University of International Business and Economics (UIBE) - School of International Trade and Economics

Yue Lv

University of International Business and Economics (UIBE)

Chunming Zhao

Beijing Normal University (BNU) - School of Economics and Business Administration

Date Written: March–April 2019

Abstract

This paper investigates the effects of trade barriers on China's participation in the global value chain (GVC) using a thorough decomposition approach for trade volume, total exports, final exports and intermediate exports. Our econometric results indicate that anti‐dumping (AD) measures initiated by trade partners have restrained the process of China's participation in the GVC. From 2000 to 2014, AD measures reduced the foreign value‐added rate of total, final and intermediate exports by 4.5 to 28.7 percent, 3.4 to 17 percent and 1.2 to 8.5 percent, respectively. In addition, suffering the effects of AD measures, China's GVC position index declined by 8.2 percent to 28.6 percent during this period. Moreover, AD measures have increased industries' upstream index by 3.2 to 13.7 percent over the same period. These results imply that both the petition and approval of AD cases has had a negative influence on the extent and position of China's GVC participation.

Keywords: anti‐dumping, foreign value‐added rate, global value chain, technology upgrading

JEL Classification: F10, F13, F14

Suggested Citation

Wang, Xiaosong and Liu, Zhexi and Lv, Yue and Zhao, Chunming, Trade Barriers and Participation in the Global Value Chain: An Empirical Study Based on Anti‐Dumping Toward China (March–April 2019). China & World Economy, Vol. 27, Issue 2, pp. 86-106, 2019, Available at SSRN: https://ssrn.com/abstract=3355914 or http://dx.doi.org/10.1111/cwe.12276

Xiaosong Wang (Contact Author)

Renmin University of China - School of Economics ( email )

No. 59, Zhongguancun Street
Beijing, Beijing 100080
China

Zhexi Liu

University of International Business and Economics (UIBE) - School of International Trade and Economics ( email )

10 East Huixin Street
Chaouang District
Beijing, 100029
China

Yue Lv

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

Chunming Zhao

Beijing Normal University (BNU) - School of Economics and Business Administration ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

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