Sponsor(s): China Society of World Economics；Institute of World Economics and Politics
12 issues per year
Current Issue: Issue 12, 2019
Journal official website:http://manu30.magtech.com.cn/sjjj/CN/1002-9621/home.shtml
The Journal of World Economy is supervised by Chinese Academy of Social Sciences, and sponsored by China Society of World Economics, Institute of World Economics and Politics, Chinese Academy of Social Sciences. It aims to promote the development of China’s world economic theory and discipline construction. Its scope covers all fields of economics, including international economy, international finance, macroeconomics, international political economy, transition economics, development economics, regional and national economy, and China’s economic system reform. The Journal is included in CSSCI.
The Journal of World Economy,2019,Vol 42,No. 12
In examining the effect that China’s anti-dumping exerts on other countries in terms of returns on capital of the industries involved, this paper studies the impact of trade policy on capital returns. Using the CSMAR database between 1997 and 2015, this paper estimates the excess return on a firm’s equity through three different methods, and empirical analysis based on the Global Antidumping Database is conducted. Econometric analysis shows that China’s anti-dumping measures on specific industries have positively promoted the return on equity of listed companies in these industries, which means that anti-dumping presents a positive impact on returns on capital; anti-dumping measures promote the rise of marginal and average market values of related firms’ investments, so that their equity shows excess return, stimulating the investment of firms. As the capital stock increases, firms tend towards a new equilibrium and the excess returns on equity decrease. The paper also conducts a heterogeneity analysis from the perspectives of capital intensity and asset specificity, demonstrating that anti-dumping measures can significantly improve the return on capital of the industries involved. In the context of rapid changes within the Chinese stock market and market sentiment volatility, all areas in China should implement and apply trade policies in an appropriate and reasonable manner so that they can offset the negative impact of unfair trade practices by foreign manufacturers and maintain market stability.