The effect of overcapacity in steel industry on antidumping actions against China

학위논문 (석사)-- 서울대학교 대학원 : Graduate School of International Studies, International Studies (International Trade Major), 2018. 8. Ahn Dukgeun.This paper presents an empirical study on the impact of the world overcapacity in the steel industry on antidumping (AD) actions against China. The study aims to analyse this effect since the 2000s when China tremendously expands its steelmaking capacity which is believed to negatively cause a considerable increase in the world unutilized capacity or overcapacity. It finds that there is a positive and significant relationship between the volume of steel excess capacity and the number of AD actions against China in this sector. The study further analyses this the linkage in different angles including development level of countries and combining with free trade agreement (FTA) effect. The result reveals that industrializing countries shows a more statistically significant evidence in terms of being more sensitive to file AD actions against China than developed counterparts. However, the imbalanced division of the data into two groups may affect this result. Moreover, China non-FTA partners show statistically significant effect while FTA partners seem to be more cautious to take AD actions against China with less statistical significance results. The study ends with some policy recommendations to reduce the Chinas rampant expansion in the steel industry and suggestions to enhance the effectiveness of AD under the WTO to deal with this problem.Chapter 1. Introduction . 1 1.1. Background of the study . 1 1.2. Literature review . 3 1.2.1. Studies on overcapacity in the steel industry 3 1.2.2. Studies on AD actions on the steel industry 5 1.3. Significance of the study . 7 1.4. Research question and methodology . 8 1.5. Structure of the paper 9 Chapter 2. Capacity development in steel industry . 10 2.1 Steelmaking capacity development in the world 10 2.2 Steelmaking capacity in China 13 Chapter 3. An overview of AD actions under the WTO . 19 3.1 AD actions and recent trends 19 3.2 AD procedure 23 Chapter 4. Overcapacity and protectionism in the steel industry 27 4.1 Excess capacity causes and consequences 27 4.2 Protectionism in the steel industry 33 Chapter 5. Empirical study on the relationship between overcapacity and AD actions against China . 38 5.1 Description of econometric model 38 5.2 Description of variables 41 5.3 Data collection and statistical tool 43 Chapter 6. Empirical results 47 6.1 The effect of overcapacity on AD actions against China (H1) . 47 6.2 The effect of overcapacity on AD actions against China in developed and developing country group (H2) . 51 6.3 The effect of overcapacity on AD actions against China combined with the effect of FTA (H3) 54 Chapter 7. Conclusion policy implication 57 7.1 Conclusion 57 7.2 Policy implication . 58 References . 61Maste