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The trade effects of antidumping duties: Evidence from the 2004 EU enlargement

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  • Sandkamp, Alexander

Abstract

This paper exploits the 2004 EU enlargement as a natural experiment to estimate the effects of antidumping (AD) duties on import prices and quantities. The automatic extension of EU AD policy to new member states following their accession is exogenous to new members' trade shocks. Using this source of variation, the paper shows that, on average, AD duties raise producer prices of targeted exporters. However, import prices from countries with non-market economy status (NMES) - notably China - remain unchanged, while quantities fall more strongly. This is in line with expectations, as the EU applies special rules to NMES countries. The trade dampening effects of AD duties persist over time. Moreover, the duties appear to induce exporters from non-targeted countries to increase their prices.

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  • Sandkamp, Alexander, 2020. "The trade effects of antidumping duties: Evidence from the 2004 EU enlargement," Journal of International Economics, Elsevier, vol. 123(C).
    • Handle: RePEc:eee:inecon:v:123:y:2020:i:c:s002219962030026x
    DOI: 10.1016/j.jinteco.2020.103307
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    4. Fuest, Clemens & Di Fabio, Udo & Felbermayr, Gabriel, 2022. "Free enterprise and state control: Annual bulletin of the advisory board of the Foundation for Family Businesses," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 273173, June.
    5. Cheng, Lu & Mi, Zhifu & Coffman, D'Maris & Meng, Jing & Chang, Dongfeng, 2021. "Destruction and Deflection: Evidence from American Antidumping Actions against China," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 203-213.
    6. 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.
    7. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    8. Wang, Xiaoying & Anwar, Sajid, 2022. "Institutional distance and China's horizontal outward foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 78(C), pages 1-22.
    9. Andrea Ciani & Joel Stiebale, 2020. "Export performance under domestic anti-dumping protection," Discussion Papers 2020-08, University of Nottingham, GEP.
    10. Yeo Joon Yoon & Wongi Kim, 2022. "Dynamic analysis of antidumping using impulse responses: a case between the United States and China," Empirical Economics, Springer, vol. 63(2), pages 671-694, August.

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    More about this item

    Keywords

    Antidumping; Trade; European Union; Market economy status;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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