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Antidumping and heterogeneous quality adjustment of multi-product firms: Evidence from Chinese exporters

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  • Meng, Ning
  • Milner, Chris
  • Song, Huasheng

Abstract

This paper investigates the effect of antidumping on multi-product firms’ adjustment in export quality using highly disaggregated Chinese exports data at the firm-product-country level for the period 2000–2014. In response to antidumping, firms tend to upgrade the quality of their exports for targeted products in affected markets by product adjustment, with this effect being more pronounced for firms with ex ante higher product quality. Antidumping induces resource reallocation across firms for a product such that higher-quality firms upgrade the quality while lower-quality firms are unaffected, and reallocation across products within a firm with the quality of products of higher competency increasing more substantially under antidumping policy. Our paper contributes to our understanding on how a multi-product firm adjusts by reallocating resources across products in the face of trade policy shocks.

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  • 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.
    • Handle: RePEc:eee:ecmode:v:92:y:2020:i:c:p:147-161
    DOI: 10.1016/j.econmod.2020.04.014
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    4. Chen, Meng-Wei & Lu, Cuicui & Tian, Yuan, 2021. "Export price and quality adjustment: The role of financial stress and exchange rate," Economic Modelling, Elsevier, vol. 96(C), pages 336-345.
    5. Michael Irlacher, 2022. "Multi-product Firms in International Economics," Economics working papers 2022-01, Department of Economics, Johannes Kepler University Linz, Austria.
    6. DOAN Thi Thanh Ha & ZHANG Hongyong, 2022. "Technical Barriers to Trade, Product Quality and Trade Margins: Firm-level evidence," Discussion papers 22056, Research Institute of Economy, Trade and Industry (RIETI).
    7. Weize Sun & Mingtao Yu & Haotian Zhang & Yifan Zhang, 2022. "Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-22, December.

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    More about this item

    Keywords

    Antidumping; Multi-product firms; Product quality; Unit value;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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