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Antidumping Protection hurts Exporters:Firm-level evidence from France

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  • Jozef Konings
  • Hylke Vandenbussche

Abstract

This paper empirically evaluates the effects of antidumping measures on the exports of protected firms. While antidumping protection raises the domestic sales of the more "traditional?non-exporting firms on the protected market with about 5%, it negatively affects the firm-level exports 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. The drop in firm-level exports 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 affects the extensive margin of exporters but to a lesser extent. Initial exporters face a marginally higher probability to stop exporting during protection compared to unprotected firms. 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 arising from the heterogeneous firm literature. We also discuss the importance of our findings for policy.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 24109.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:24109

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

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Citations

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Cited by:
  1. Veysel Avsar, 2013. "Antidumping, Retaliation Threats, and Export Prices," World Bank Economic Review, World Bank Group, vol. 27(1), pages 133-148.
  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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