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Antidumping protection hurts exporters : firm-level evidence from France

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  • KONINGS, Jozef

    ()
    (Catholic University of Leuven and LICOS, Department of Economics)

  • VANDENBUSSCHE, Hylke

    ()
    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

Firms protected by antidumping measures do not unequivocally benefit from them. Antidumping protection benefits non-exporters active on the protected market by raising their domestic sales, but hurts exporters of similar products as the protected ones. Export sales of protected firms fall by almost 8% compared to a relevant control group of unprotected firms. This effect more than doubles for firms that are global, i.e. firms with foreign affiliates. Measured at the product-level, extra-EU exports of goods protected by antidumping fall by 36% while exports to target countries fall by as much as 66% following protection. Protection also has an effect on the extensive margin, by raising the probability to start exporting for firms that were initially nonexporters. Existing exporters face a higher probability to stop exporting during protection. Finally, we find that the productivity of exporters falls while that of non-exporters rises during antidumping protection. We offer a number of plausible explanations for our findings that stem from the heterogeneous firm literature. We also discuss the importance of our findings for policy.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009042.

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Date of creation: 01 Jul 2009
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Handle: RePEc:cor:louvco:2009042

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Keywords: antidumping; firm-level exports; intensive margin; extensive margin; productivity; dif-in-dif;

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References

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Citations

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Cited by:
  1. Avsar, Veysel, 2013. "Antidumping, retaliation threats, and export prices," Policy Research Working Paper Series 6313, The World Bank.
  2. Christian Gormsen, 2011. "Anti-dumping with heterogeneous firms," Economie Internationale, CEPII research center, issue 125, pages 41-64.
  3. Veysel Avsar, 2010. "The Anatomy of Trade Deflection," Working Papers 1004, Florida International University, Department of Economics.
  4. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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