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Antidumping protection hurts exporters: firm-level evidence

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  • Jozef Konings
  • Hylke Vandenbussche

Abstract

This paper estimates the impact of antidumping protection on export behavior of French firms covered by antidumping cases. Traditional models suggest that all domestic firms covered by antidumping protection should benefit from protection. However, in an environment of globally fragmented supply chains, firms may be damaged by protection if duties increase input costs for firms covered by the protection. Results from this paper indicate that while non-exporting firms benefit from protection, domestic sales of export-oriented firms and exports in general, are depressed due to protection. This effect is more severe for multinational firms. Copyright Kiel Institute 2013

Suggested Citation

  • Jozef Konings & Hylke Vandenbussche, 2013. "Antidumping protection hurts exporters: firm-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 295-320, June.
    • Handle: RePEc:spr:weltar:v:149:y:2013:i:2:p:295-320
    DOI: 10.1007/s10290-013-0151-8
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    Citations

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    Cited by:

    1. Aksel Erbahar & Yuan Zi, 2015. "Cascading Trade Protection: Theory and Evidence from the U.S," CTEI Working Papers series 04-2015, Centre for Trade and Economic Integration, The Graduate Institute.
    2. Russell Hillberry & Phillip McCalman, 2016. "Import dynamics and demands for protection," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1125-1152, August.
    3. Jabbour, Liza & Tao, Zhigang & Vanino, Enrico & Zhang, Yan, 2019. "The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance," Journal of International Economics, Elsevier, vol. 117(C), pages 1-20.
    4. Maxwell T. Andersen & Robert M. Feinberg, 2018. "Fishing Downstream Revisited: A Multi-country Analysis of Antidumping Patterns," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 18(2), pages 1-9, June.
    5. Chang, Yang-Ming & Raza, Mian F., 2023. "Dumping, antidumping duties, and price undertakings," Research in Economics, Elsevier, vol. 77(1), pages 131-151.
    6. Arevik Gnutzmann-Mkrtchyan & Hoffstadt, 2020. "Use and Abuse of Antidumping by Global Cartels," CESifo Working Paper Series 8729, CESifo.
    7. Joo Yeon Sun & Seungrae Lee, 2017. "Anti-dumping Duty and Firm Heterogeneity: Evidence from Korea," The World Economy, Wiley Blackwell, vol. 40(9), pages 2007-2030, September.
    8. Carlo Altomonte & Italo Colantone & Enrico Pennings, 2016. "Heterogeneous Firms and Asymmetric Product Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 64(4), pages 835-874, December.
    9. Michele Imbruno, 2014. "Trade Liberalization, Intermediate Inputs and Firm Efficiency: Direct versus Indirect Modes of Import," Discussion Papers 2014-02, University of Nottingham, GEP.
    10. Feng, Xiaoli & Li, Wenjing & Peng, Yuanhuai & Tan, Youchao, 2021. "International trade friction and the cost of debt: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    11. Vandenbussche, Hylke & Viegelahn, Christian, 2018. "Input reallocation within multi-product firms," Journal of International Economics, Elsevier, vol. 114(C), pages 63-79.
    12. Veysel Avsar, 2017. "The Anatomy of Trade Deflection," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(4), pages 1-11, December.
    13. Iza Lejárraga & Harald Oberhofer, 2015. "Performance of small- and medium-sized enterprises in services trade: evidence from French firms," Small Business Economics, Springer, vol. 45(3), pages 673-702, October.
    14. Ma, Alyson C. & Van Assche, Ari, 2014. "Vertical Specialization, Tariff Shirking, and Trade," ADB Economics Working Paper Series 390, Asian Development Bank.
    15. Erbahar, Aksel & Zi, Yuan, 2017. "Cascading trade protection: Evidence from the US," Journal of International Economics, Elsevier, vol. 108(C), pages 274-299.
    16. Choi Nakgyoon, 2018. "Economic Effects of Anti-Dumping Duties: Protectionist Measures or Trade Remedies?," Working Papers id:12447, eSocialSciences.
    17. James Lake & Maia Linask, 2016. "Domestic political competition and pro-cyclical import protection," Review of International Economics, Wiley Blackwell, vol. 24(3), pages 564-591, August.
    18. Grijalva, Diego F. & Uribe-Terán, Carlos & Gachet, Iván, 2024. "The Contractionary Effects of Protectionist Trade Policy in a Dollarized Economy," IDB Publications (Working Papers) 13358, Inter-American Development Bank.
    19. Alyson C. Ma & Ari Van Assche, 2014. "Vertical specialization, tariff shirking and trade," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 5, pages 148-178, Edward Elgar Publishing.
    20. Andrea Ciani & Joel Stiebale, 2020. "Export performance under domestic anti-dumping protection," Discussion Papers 2020-08, University of Nottingham, GEP.
    21. Veysel Avsar & Gultekin Gollu & Nurgul Sevinc, 2022. "Strict trade measures, flexible financing," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1431-1452, April.

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    More about this item

    Keywords

    Antidumping; Firm-level exports; Intensive margin; Extensive margin; Productivity; Global supply chains; F13; L41; O30; C2;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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