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The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance

Author

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  • Jabbour, Liza
  • Tao, Zhigang
  • Vanino, Enrico
  • Zhang, Yan

Abstract

This paper analyses the effects of the European Union's anti-dumping tariffs against Chinese imports on all affected firms: "the good" European import-competing firms, "the bad" Chinese exporters and "the ugly" European importers of dumped products. The results show that temporary import tariffs are beneficial to the least productive "good" EU producers, but harms the most productive "ugly" EU importers. Overall, the net effects of anti-dumping policy on European employment and exports are largely negative. Also tariffs enhance the productivity of surviving "bad" Chinese exporters and widens the productivity gap with European competitors.

Suggested Citation

  • Jabbour, Liza & Tao, Zhigang & Vanino, Enrico & Zhang, Yan, 2018. "The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance," LSE Research Online Documents on Economics 91672, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:91672
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    13. SUN Chang & TAO Zhigang & YUAN Hongjie & ZHANG Hongyong, 2019. "The Impact of the US-China Trade War on Japanese Multinational Corporations," Discussion papers 19050, Research Institute of Economy, Trade and Industry (RIETI).
    14. García-Vega, María & Vicente-Chirivella, Óscar, 2020. "Do university technology transfers increase firms’ innovation?," European Economic Review, Elsevier, vol. 123(C).
    15. Magdalene Silberberger & Anja Slany & Christian Soegaard & Frederik Stender, 2022. "The Aftermath of Anti-Dumping: Are Temporary Trade Barriers Really Temporary?," Open Economies Review, Springer, vol. 33(4), pages 677-704, September.
    16. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    17. 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.
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    20. Stefano Schiavo & Chiara Tomasi & Min Zhu, 2021. "Anti-dumping activities against China: patterns and effects," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 7-30, April.
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    23. Andrea Ciani & Joel Stiebale, 2020. "Export performance under domestic anti-dumping protection," Discussion Papers 2020-08, University of Nottingham, GEP.
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    More about this item

    Keywords

    anti-dumping; difference-in-difference; China; European Union; trade policy; firm heterogeneity;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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