Antidumping Protection and Productivity Growth of Domestic Firms
AbstractIn this Paper we provide empirical evidence that Antidumping (AD) Protection can induce technological catching-up by domestic firms affected by the import protection. We identify a panel of 1,793 import-competing domestic firms between 1993 and 2000, directly affected by AD cases that were initiated in 1996. Using a difference-in-difference approach, we find evidence of increased Total Factor Productivity (TFP) growth for firms protected by AD measures compared to firms that did not receive protection. Our analysis indicates, however, that the effect of protection depends on the ‘distance to the frontier firm’ in the industry. While protection raises TFP growth of ‘laggard’ firms, the reverse holds for domestic firms that are close to the efficiency frontier. These results confirm recent theoretical work supporting the view that protection can induce technological catching-up.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4620.
Date of creation: Sep 2004
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Konings, Joep & Vandenbussche, Hylke, 2004. "Antidumping protection and productivity growth of domestic firms," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/85337, Katholieke Universiteit Leuven.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-13 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ngo Van Long & Horst Raff & Frank Staehler, 2007.
"The Effects of Trade Liberalization on Productivity and Welfare: The Role of Firm Heterogeneity, R&D and Market Structure,"
0710, University of Otago, Department of Economics, revised Jun 2007.
- Stähler, Frank & Raff, Horst & Long, Ngo Van, 2007. "The Effects of Trade Liberalization on Productivity and Welfare: The Role of Firm Heterogeneity, R&D and Market Structure," Economics Working Papers 2007,20, Christian-Albrechts-University of Kiel, Department of Economics.
- Jan Van Hove, 2010.
"Variety and quality in intra-European manufacturing trade: the impact of innovation and technological spillovers,"
Journal of Policy Reform,
Taylor and Francis Journals, vol. 13(1), pages 43-59.
- Jan Van Hove, 2010. "Variety and quality in intra-European manufacturing trade: the impact of innovation and technological spillovers," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 43-59.
- Van Hove, Jan, 2009. "Variety and Quality in Intra-European Manufacturing Trade: The Impact of Innovation and Technological Spillovers," Working Papers 2009/43, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- Yevgeniya Shevtsova, 2012. "International Trade and Productivity: Does Destination Matter?," Discussion Papers 12/18, Department of Economics, University of York.
- Meredith Crowley, 2006. "Why are safeguards needed in a trade agreement?," Working Paper Series WP-06-06, Federal Reserve Bank of Chicago.
- Miyagiwa, Kaz & Ohno, Yuka, 2007. "Dumping as a signal of innovation," Journal of International Economics, Elsevier, vol. 71(1), pages 221-240, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.