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Anti-dumping Duties and their Impact on Exporters: Firm Level Evidence from China

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  • Chandra, Piyush
  • Long, Cheryl

Abstract

Despite a dramatic rise in the instances of anti-dumping (AD) duties, their impact on the targeted firms is not clear. Using detailed firm level data we find robust evidence that the US AD duty led to over 12 (or five) percent decrease in labor productivity (or TFP) of targeted Chinese firms. We also find that firms with high initial export intensity experience both a higher decrease in exports (and total sales) and a bigger drop in productivity due to the US AD duties. Our results suggest reduced economies of scale as a possible mechanism for the drop in firm productivity.

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  • Chandra, Piyush & Long, Cheryl, 2013. "Anti-dumping Duties and their Impact on Exporters: Firm Level Evidence from China," World Development, Elsevier, vol. 51(C), pages 169-186.
    • Handle: RePEc:eee:wdevel:v:51:y:2013:i:c:p:169-186
    DOI: 10.1016/j.worlddev.2013.05.018
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    6. Zhang, Hongyong, 2018. "Political connections and antidumping investigations: Evidence from China," China Economic Review, Elsevier, vol. 50(C), pages 34-41.
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    9. Guobing Shen & Peijie Wang & Yuanhan Xu, 2021. "Trade destruction and deflection effects of US‐China trade frictions on China’s tariff‐targeted products," The World Economy, Wiley Blackwell, vol. 44(7), pages 2076-2106, July.
    10. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    11. Holger Görg & Haiou Mao, 2022. "Does the belt and road initiative stimulate Chinese exports? Evidence from micro data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2084-2100, July.
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    13. Septiyas Trisilia, Mustika & Widodo, Tri, 2019. "Impacts of China Coal Import Tariff against US on Global Economy and CO2 Emissions," MPRA Paper 91231, University Library of Munich, Germany.
    14. 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.
    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.
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    19. 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.

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