Does the Foreign Direct Investment (FDI) Induced by China’s Antidumping Hamper the Development of Domestic Industry?—An Empirical Research Based on Calibrated Model with the Manufacturing Industry Data
Does the Foreign Direct Investment (FDI) Induced by China’s Antidumping Hamper the Development of Domestic Industry?—An Empirical Research Based on Calibrated Model with the Manufacturing Industry Data
WU Guo-song1, SUN Ai-jun1, LIN Da-yan2
1.school of Economics and Management, Huaiyin Normal University,Huaian 223001, China; 2.College of Economics and Management, Nanjing University of Science & Technology, Nanjing 210094, China
Abstract This paper tries to reveal the impact of FDI induced by implementation of anti-dumping measures for manufacturing products on the development of Chinese domestic industry, using the calibrated model of oligopoly competition, and with the manufacturing products anti-dumping cases between China and European Union, Japan, the United States and Korea from 2001 to 2011. Research results show that FDI caused by Chinese anti-dumping actions may weaken or even reverse the effects of commercial protection policy. The lower cost of FDI will cause more welfare losses of domestic manufacturing industry. However, if domestic manufacturing enterprises can decrease its comprehensive cost immediately after the entry of FDI, they can still won advantageous market position, even if FDI has low investment cost.
TUN Guo-Song,SUN Ai-Jun,LIN Da-Yan. Does the Foreign Direct Investment (FDI) Induced by China’s Antidumping Hamper the Development of Domestic Industry?—An Empirical Research Based on Calibrated Model with the Manufacturing Industry Data. Economic Survey, 2015, 32(1): 050.
2015, Vol. 32 
