To date, most studies on anti-dumping (AD) have researched the effect of AD on trade flows at the product-level finding substantial effect of AD on trade at product-level. Few studies investigate the effect of overall AD cases on aggregate trade flows. This study attempts to fill some of the gap in the literature by using the gravity model to analyze the effect of AD petitions against Taiwan and other countries on Taiwan’s aggregate export flows. Panel data on Taiwan’s export flows to forty major trade partners from 2003 to 2012, and AD initiations from 2001 to 2011 is used for this analysis. The empirical results show that for Taiwan, AD petitions have statistically insignificant effect on aggregate level exports to her trade partners.

To date, most studies on anti-dumping (AD) have researched the effect of AD on trade flows at the product-level finding substantial effect of AD on trade at product-level. Few studies investigate the effect of overall AD cases on aggregate trade flows. This study attempts to fill some of the gap in the literature by using the gravity model to analyze the effect of AD petitions against Taiwan and other countries on Taiwan’s aggregate export flows. Panel data on Taiwan’s export flows to forty major trade partners from 2003 to 2012, and AD initiations from 2001 to 2011 is used for this analysis. The empirical results show that for Taiwan, AD petitions have statistically insignificant effect on aggregate level exports to her trade partners.

ABSTRACT I
ACKNOWLEDGMENTS II
TABLE OF CONTENTS III
LIST OF TABLES AND FIGURE IV
1. INTRODUCTION 1
1.1 Background and Motivation 1
1.2 Research Objectives 2
1.3 AD Procedure 3
1.4 Channels through Which AD Protection Can Affect Trade 4
1.4.1 Trade Destruction Effects 4
1.4.2 Trade Diversion Effects 4
1.4.3 Downstream Effects 5
1.4.4 Deterrent Effects 6
1.4.5 Collusive Device 6
1.4.6 Foreign Direct Investment Effects 6
1.4.7 Retaliation Effects 7
1.5 Literature Review and Research Gap 7
1.6 Research Value 9
1.7 Structure 9
2. EMPIRICAL METHODOLOGY AND DATA 10
2.1 Gravity Model 10
2.2 Specification of Research Model 13
2.2.1 Dependent Variable 14
2.2.2 Explanatory Variable 14
2.3 Description of Sample 15
2.4 Data Collection 20
2.5 Data Analysis 22
3. EMPIRICAL RESULT 25
4. CONCLUSION 29
BIBLIOGRAPHY 31
APPENDIX 34

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