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Trade Margins, Anti-Dumping and Sino-US Intra-Industry Trade——A Concurrent Discussion on the Sino-US Trade Frictions

April 25, 2019
Li Bo1 and Liu Hongduo

(1.School of Economics (School of Accounting), Yunnan University; 2.School of Economics and Trade, Guangdong University of Foreign Studies)

 

Abstract: This paper demonstrates the impact of trade margin on intra-industry trade from both theoretical and empirical aspects, using HS 4-digit code trade data from 1999 to 2016 between China and the United States. The research shows that the increase in the intensity of China's exports to the United States is bad for the development of the Sino-US intra-industry trade, while the increase in the expansion of the said exports is conducive to the improvement of the trade between the two countries. Furthermore, whether China's exports to the United States are subject to an anti-dumping investigation or not, any increase in the intensity of the said exports will reduce the level of intra-industry trade in any case, while the improvement in the expansion margin will promote the intra-industry trade only in products that are not subject to an anti-dumping investigation. Moreover, the increase in the intensity of the said exports only inhibits the development of vertical intra-industry trade, but the increase in the expansion margin promotes the development of both vertical and horizontal intra-industry trades. Therefore, with the Sino-US trade frictions continuing, it is necessary for China's export trade with the United States to advance along the growth in expansion margin, thereby avoiding the risk of trade frictions getting worse and promoting the development of horizontal intra-industry trades.

 

Key words: extensive margin; intensive margin; intra-industry trade; anti-dumping