Author Jongduk Kim and Moonhee Cho Series 19-10 Language English Date 2019.12.30
In this study, we investigate the question whether importing countries’ implementation of protective trade measures, such as antidumping duties, leads to changes in foreign direct investment from trading partners. That is, we examine the prevalence of “ADP-jumping FDI” across countries. We use more recent and organized non-tariff measure data provided by the WTO I-TIP and Ghodsi et al. (2017), which can be matched with other trade-related variables. Using econometrically sensible identification strategies, the Tobit and the Heckman two-stage selection models, we find out that ADP-jumping FDI to importing countries prevails rather consistently around the world. These results are also consistent with those using Poisson and linear fixed effects models.
2-1. Identification Strategy
3-1. Import-restricting Measures
3-2. Antidumping Measure as an FDI Determinant
3-3. Robustness Check
4. Concluding Remarks
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