Product Quality and Antidumping Filings

Time：4:00pm - 5:30pm, Mar 29, 2019

Venue：Room 359S, Overseas Exchange Center, Peking University

Speaker：Lex Zhao

(Research Institute for Economics & Business, Kobe University)

 

Abstract:

 

In this paper, we present facts and construct a simple theoretical sketch to show that low product quality is an important reason for anti-dumping initiations. The low product quality could stem from low-quality valuations of consumer or high cost of improving quality. We then use firm-level data from China to test the theory. Results indicate low export quality is indeed a major reason for why China receives so many AD petitions. Further, (i) Chinese intermediates such as iron and steel, machinery and chemical fiber products are more likely to get AD, due to the high-cost to improve their quality; (ii) products of state-owned firms receive more AD, because they produce more intermediates; (iii) firms in western China receive more AD, since the reputation of their products is lower than in other regions. Various robustness checks such as lagged variables, average reputation, and different samples are conducted.

 

Speaker:

Laixun (Lex) Zhao is professor of Institute of Economic Management at Kobe University. His main research fields are International Economics and Chinese Economy. He has published papers in top economic journals such as European Economics Review, Journal of International Economics, Journal of Labor Economics, Journal of Industrial Economics, Journal of Urban Economics and Journal of Economic Behavior & Organization. He graduated from University of Florida in 1993, where he received his Ph.D. in economics degree.