Int. J. of Trade and Global Markets   »   2016 Vol.9, No.3

 

 

Title: An empirical exploration of Chinese imports and the US steel industry

 

Authors: Myeong Hwan Kim; Yongseung Han; Carolyn Fabian Stumph

 

Addresses:
Department of Economics, Indiana University-Purdue University Fort Wayne, 2101 E. Coliseum Boulevard, Fort Wayne, IN 46805, USA
Department of Economics and Finance, University of North Georgia, 1201 Bishop Farms Pkwy, Watkinsville, GA 30677, USA
Department of Economics, Indiana University-Purdue University Fort Wayne, 2101 E. Coliseum Boulevard, Fort Wayne, IN 46805, USA

 

Abstract: The paper identifies four key issues concerning the relationship between Chinese imports and the US steel industry: currency manipulation, state-owned enterprises, subsidisation, and environmental regulations. Given these issues, we run a regression to empirically explore the relationship between Chinese imports and US steel prices. We found that Chinese imports have two conflicting effects: one is to lower US steel prices while the other is to increase the prices via China's increasing market share. The overall impact is that Chinese imports increase US steel prices, as the effect due to market share is larger than the demand effect. With these findings, we suggest that, of the four effects considered, Chinese subsidisation is the most crucial.

 

Keywords: US steel industry; international trade; USA; United States; Chinese imports; China; steel prices; currency manipulation; state-owned enterprises; SOEs; subsidisation; environmental regulations; subsidies.

 

DOI: 10.1504/IJTGM.2016.077853

 

Int. J. of Trade and Global Markets, 2016 Vol.9, No.3, pp.272 - 285

 

Submission date: 23 Jul 2015
Date of acceptance: 16 Dec 2015
Available online: 17 Jul 2016

 

 

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