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Abstract

In recent years, the United States has taken the lion’s share of the Chinese broiler meat import market, ranging from 53.0% to 84.9%. Under the threat of rising poultry imports from the United States Chinese producers asked for an investigation into chicken prices, accusing American poultry firms of dumping. The investigation led to antidumping duties on U.S. chicken imports as of February 13, 2010, ranging from 43.1% to 105.4%. This study is designed to evaluate U.S.-China poultry bilateral trade relations under the new tariff using an excess-supply-excess-demand model. The structural model is estimated using GMM with HAC (heteroskedasticity-autocorrelation) robust standard errors to obtain structural coefficients. The analysis focuses on chicken wings, legs, and feet. Monthly data for 2005 to 2009 are used in the analysis and reflect recent events.

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