The Trade Effects of Antidumping Investigations: The Solar Photovoltaic Market
Open Access
Author:
Lei, Chenyue
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Jonathan W Eaton, Thesis Supervisor James R. Tybout, Thesis Honors Advisor
Keywords:
antidumping solar photovoltaic international trade trade destruction trade diversion trade deflection
Abstract:
In the paper, I examine the trade effects of antidumping investigations in the solar photovoltaic market, applying the trade gravity equation on bilateral export data from 2001 to 2014. Following the theoretical works of antidumping, I propose the global solar photovoltaic market is short-run monopolistic competition. I find that the trade disputes between the United States and China decreased
U.S. imports from China and increased imports from non-subject economies. I also find that China deflected its exports to economies who did not file an antidumping investigation to
Chinese products. These three effects could be summarized as trade destruction, trade diversion
and trade deflection. Moreover, I review the U.S. Antidumping Law, government support programs, and firms response. In addition, I summarize the development and characteristics of solar photovoltaic market.