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Plant-level responses to antidumping duties: Evidence from U.S. manufacturers

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  • Pierce, Justin R.

Abstract

This paper describes the effects of a temporary increase in tariffs on the performance and behavior of U.S. manufacturers. Using a dataset that includes the full population of U.S. manufacturing plants, I show that an apparent positive correlation between antidumping duties and traditional revenue productivity is likely misleading. For the subset of plants reporting quantity-based output data, increases in prices and markups artificially inflate the effect of antidumping duties on revenue productivity, while physical productivity actually falls. Moreover, antidumping duties allow low-productivity plants to continue producing protected products, slowing the reallocation of resources from less productive to more productive uses.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 85 (2011)
Issue (Month): 2 ()
Pages: 222-233

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Handle: RePEc:eee:inecon:v:85:y:2011:i:2:p:222-233

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Web page: http://www.elsevier.com/locate/inca/505552

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Keywords: Antidumping; Temporary protection; Heterogeneous firms; Productivity;

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