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How do exporters adjust export product scope and product mix to react to antidumping?

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  • Lu, Yi
  • Tao, Zhigang
  • Zhang, Yan

Abstract

Using Chinese customs data covering all exporters over 2000–06, this paper empirically investigates how Chinese multi-product exporters adjust their product scope and product mix to react to U.S. antidumping. The estimation results indicate that surviving exporters experiencing antidumping would reduce their overall export product scope and concentrate on fewer more successful products, although the overall export value does not change. Specifically, they drop many pre-existing peripheral export products and simultaneously introduce new products that are closer to their main industry into the U.S. market. The analysis also finds that the sophistication of surviving exporters' export product mix increases in response to antidumping, and they export more products that have higher upstreamness.

Suggested Citation

  • Lu, Yi & Tao, Zhigang & Zhang, Yan, 2018. "How do exporters adjust export product scope and product mix to react to antidumping?," China Economic Review, Elsevier, vol. 51(C), pages 20-41.
    • Handle: RePEc:eee:chieco:v:51:y:2018:i:c:p:20-41
    DOI: 10.1016/j.chieco.2018.04.010
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    Cited by:

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    2. Michael Irlacher, 2022. "Multi-product Firms in International Economics," Economics working papers 2022-01, Department of Economics, Johannes Kepler University Linz, Austria.
    3. Ning Meng & Feicheng Wang, 2023. "Navigating Trade Policy Shocks: How Firms Reallocate Exports in Third Markets," CESifo Working Paper Series 10752, CESifo.
    4. Chen, Yufeng & Zhang, Shun & Miao, Jiafeng, 2023. "The negative effects of the US-China trade war on innovation: Evidence from the Chinese ICT industry," Technovation, Elsevier, vol. 123(C).
    5. Meng, Ning & Milner, Chris & Song, Huasheng, 2020. "Antidumping and heterogeneous quality adjustment of multi-product firms: Evidence from Chinese exporters," Economic Modelling, Elsevier, vol. 92(C), pages 147-161.
    6. Jiemiao Dong & Yinxia Mi & Zhuangxiong Yu, 2022. "Industrial plans, export destinations and product quality," The World Economy, Wiley Blackwell, vol. 45(3), pages 812-840, March.
    7. Tan Li & Wei Xiao, 2022. "US antidumping investigations and employment adjustment in Chinese manufacturing firms," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(1), pages 159-182, January.
    8. Wei, Hao & Tu, Yue & Zhou, Peng, 2023. "Technical barriers to trade and export performance: Comparing exiting and staying firms," Economic Modelling, Elsevier, vol. 126(C).
    9. Xie, Mengjun, 2021. "Increase in income and international promotion of language: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 73(C), pages 275-289.

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    More about this item

    Keywords

    Antidumping; Difference-in-differences; Multi-product exporters; Export product scope; Product mix;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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