Analysis on Trade Destruction Effect of Anti-dumping and Trade Competitiveness Index

After theoretic analysis of anti-dumping against exporting country on trade destruction effect, we find this effect exists. Due to trade destruction effect, trade competitiveness index of exporting products becomes smaller. But also influenced by imports of exporting country, the total effect may be smaller, constant or larger. Based on this, we construct a model to empirically analyze the effects of anti-dumping by US and EU against on their trade between china, and demonstrate that anti-dumping by US (EU) against China decreases Chinese annual exports by 0.502674% (0.627126%), which means that exports of China to US and EU decrease $3.49 billion between 1995 and 2006. After anti-dumping by US and EU, trade competiveness index of Chinese exporting products are different. Index of 28 products become smaller and 37 products are basically constant and 1 product become larger.