Social Sciences in China (Chinese Edition)

No.9, 2013

 

The Micro Formation Mechanism of Trade Frictions between Developing Powers: With the Example of India’s Anti-Dumping against China

(Abstract)

 

Wang Xiaosong and Xie Shenxiang

 

Building on Grossman and Helpman’s “Protection for Sale” model, this study employs the case-level data in 1999-2009 to analyze empirically the influencing factors in India’s decision to impose anti-dumping duties on China, and to reveal the micro formation mechanism of economic conflicts between China and India. The results show that the political power of the Indian anti-dumping petitioner can significantly increase the duty level of the final decision, and that the relationship between import penetration ratio and duties is determined by the fact whether the petitioner belongs to a political organization or not; the anti-dumping duties have a positive cor’s decision on anti-dumping duties is under the obvious influence of the political power of domestic interest groups and the motivation of suppressing China to gain an advantage in the competition between the two countries.