IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v201y2025ics0301421525000631.html
   My bibliography  Save this article

International trade barriers, export and industrial resilience: An empirical study based on the EU and USA antidumping and countervailing policies on photovoltaic products

Author

Listed:
  • Wang, Mudan
  • Xie, Zeyu

Abstract

The increasing trade barriers imposed by the EU and the USA on China have created a challenging environment for the growth of Chinese emerging and high-tech industries. This paper, which is based on new trade theory with substitutes, examines how antidumping and countervailing policies (ACPs) from the EU and the USA impact Chinese photovoltaic exports and firm numbers. Using product-level trade data, business registration data, and patent application data, a staggered DID model is employed to assess the effects on exports, firm entry, and innovation. The results show that ACPs resulted in a significant decrease in short-term Chinese PV exports of approximately 87.5% and a reduction in the number of new entrants of approximately 10.7%. However, in the long term, both exports and firm entry exhibited a “V-shaped” rebound, with firm entry rebounding faster and more significantly. Further analysis revealed that ACPs led to a rapid increase in domestic photovoltaic capacity and a sustained rise in patent applications, highlighting the effectiveness of expanding the domestic market and focusing on technological innovation to counter international trade barriers.

Suggested Citation

  • Wang, Mudan & Xie, Zeyu, 2025. "International trade barriers, export and industrial resilience: An empirical study based on the EU and USA antidumping and countervailing policies on photovoltaic products," Energy Policy, Elsevier, vol. 201(C).
  • Handle: RePEc:eee:enepol:v:201:y:2025:i:c:s0301421525000631
    DOI: 10.1016/j.enpol.2025.114556
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421525000631
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2025.114556?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lu, Yi & Tao, Zhigang & Zhang, Yan, 2013. "How do exporters respond to antidumping investigations?," Journal of International Economics, Elsevier, vol. 91(2), pages 290-300.
    2. Li, Weihao & Hu, Hongbing & Hong, Zekun, 2024. "Green finance policy, ESG rating, and cost of debt——Evidence from China," International Review of Financial Analysis, Elsevier, vol. 92(C).
    3. McCarthy, Killian J., 2016. "On the influence of the European trade barrier on the chinese pv industry: Is the solution to the solar-dispute “successful”?," Energy Policy, Elsevier, vol. 99(C), pages 154-157.
    4. Sun, Chuanwang & Khan, Anwar & Cai, Weiyi, 2024. "The response of energy aid and natural resources consumption in load capacity factor of the Asia Pacific emerging countries," Energy Policy, Elsevier, vol. 190(C).
    5. Li, Chunding & Whalley, John, 2021. "Trade protectionism and US manufacturing employment," Economic Modelling, Elsevier, vol. 96(C), pages 353-361.
    6. Nelson, Kelly P. & Parton, Lee C. & Brown, Zachary S., 2022. "Biofuels policy and innovation impacts: Evidence from biofuels and agricultural patent indicators," Energy Policy, Elsevier, vol. 162(C).
    7. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2015. "Product standards and margins of trade: Firm-level evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 29-44.
    8. Vandenbussche, Hylke & Viegelahn, Christian, 2018. "Input reallocation within multi-product firms," Journal of International Economics, Elsevier, vol. 114(C), pages 63-79.
    9. Wang, Xiaojuan & Shi, Benye, 2022. "Transmission and Diffusion Effect of Sino-US Trade Friction along Global Value Chains," Finance Research Letters, Elsevier, vol. 46(PA).
    10. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    11. Liu, Ming & Shan, Yanfei & Li, Yemei, 2022. "Study on the effect of carbon trading regulation on green innovation and heterogeneity analysis from China," Energy Policy, Elsevier, vol. 171(C).
    12. Kirill Borusyak & Xavier Jaravel & Jann Spiess, 2024. "Revisiting Event-Study Designs: Robust and Efficient Estimation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(6), pages 3253-3285.
    13. Cohn, Jonathan B. & Liu, Zack & Wardlaw, Malcolm I., 2022. "Count (and count-like) data in finance," Journal of Financial Economics, Elsevier, vol. 146(2), pages 529-551.
    14. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    15. Douglas L. Miller, 2023. "An Introductory Guide to Event Study Models," Journal of Economic Perspectives, American Economic Association, vol. 37(2), pages 203-230, Spring.
    16. Crowley, Meredith & Meng, Ning & Song, Huasheng, 2018. "Tariff scares: Trade policy uncertainty and foreign market entry by Chinese firms," Journal of International Economics, Elsevier, vol. 114(C), pages 96-115.
    17. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    18. Ashesh Rambachan & Jonathan Roth, 2023. "A More Credible Approach to Parallel Trends," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(5), pages 2555-2591.
    19. Huang, Yi & Lin, Chen & Liu, Sibo & Tang, Heiwai, 2023. "Trade networks and firm value: Evidence from the U.S.-China trade war," Journal of International Economics, Elsevier, vol. 145(C).
    20. Kao, Kuo-Feng & Peng, Cheng-Hau, 2016. "Anti-dumping protection, price undertaking and product innovation," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 53-64.
    21. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    22. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    23. Chuanhao Liu & Peng Cui & Hongxia Zhao & Zhanzhen Zhang & Yanshuo Zhu & Huijiao Liu, 2024. "Green Finance, Economic Policy Uncertainty, and Corporate ESG Performance," Sustainability, MDPI, vol. 16(22), pages 1-21, November.
    24. Li, Jie & Lu, Yi & Song, Hong & Xie, Huihua, 2019. "Long-term impact of trade liberalization on human capital formation," Journal of Comparative Economics, Elsevier, vol. 47(4), pages 946-961.
    25. Xie, Yi & Jiang, Jinwen & Wang, Dong, 2024. "Green finance policy and labor demand: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    26. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    27. Wang, Sanchuan & Shu, Wanwu & Cui, Lianbiao, 2024. "Green finance policy and green economic transformation," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    28. Jabbour, Liza & Tao, Zhigang & Vanino, Enrico & Zhang, Yan, 2019. "The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance," Journal of International Economics, Elsevier, vol. 117(C), pages 1-20.
    29. Grundke, Robert & Moser, Christoph, 2019. "Hidden protectionism? Evidence from non-tariff barriers to trade in the United States," Journal of International Economics, Elsevier, vol. 117(C), pages 143-157.
    30. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    31. Liu, Xiaoqian & Cifuentes-Faura, Javier & Zhao, Shikuan & Wang, Long, 2023. "Government environmental attention and carbon emissions governance: Firm-level evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 121-142.
    32. Jonathan Roth, 2022. "Pretest with Caution: Event-Study Estimates after Testing for Parallel Trends," American Economic Review: Insights, American Economic Association, vol. 4(3), pages 305-322, September.
    33. Sun, Chuanwang & Min, Jialin, 2024. "Dynamic trends and regional differences of economic effects of ultra-high-voltage transmission projects," Energy Economics, Elsevier, vol. 138(C).
    34. Xia, Yan & Kong, Yishu & Ji, Qiang & Zhang, Dayong, 2019. "Impacts of China-US trade conflicts on the energy sector," China Economic Review, Elsevier, vol. 58(C).
    35. Binz, Christian & Tang, Tian & Huenteler, Joern, 2017. "Spatial lifecycles of cleantech industries – The global development history of solar photovoltaics," Energy Policy, Elsevier, vol. 101(C), pages 386-402.
    36. Li, Qianwen & Qian, Tingyu & Wang, Jiaqi & Long, Ruyin & Chen, Hong & Sun, Chuanwang, 2023. "Social “win-win” promotion of green housing under the four-subject evolutionary game," Energy Economics, Elsevier, vol. 127(PA).
    37. Cheng, Lu & Mi, Zhifu & Coffman, D'Maris & Meng, Jing & Chang, Dongfeng, 2021. "Destruction and Deflection: Evidence from American Antidumping Actions against China," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 203-213.
    38. Xiaosong Wang & Zhexi Liu & Yue Lv & Chunming Zhao, 2019. "Trade Barriers and Participation in the Global Value Chain: An Empirical Study Based on Anti‐dumping toward China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(2), pages 86-106, March.
    39. John Gardner, 2022. "Two-stage differences in differences," Papers 2207.05943, arXiv.org.
    40. Nguyen, Ly & Kinnucan, Henry W., 2019. "The US solar panel anti-dumping duties versus uniform tariff," Energy Policy, Elsevier, vol. 127(C), pages 523-532.
    41. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ciani, Andrea & Stiebale, Joel, 2024. "Export Performance Under Domestic Anti-Dumping Protection," World Development, Elsevier, vol. 183(C).
    2. Shen, Houqi & Zhang, Yuanmeng & Wang, Mingzhe & Lei, Yumeng, 2025. "Unlocking the dual benefits: Economic and ecological impacts of China's National Key Ecological Function Areas," China Economic Review, Elsevier, vol. 90(C).
    3. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    4. Zhong, Yuan & Lai, Huisu & Zhang, Liang & Guo, Lixiang & Lai, Xiaobing, 2025. "Does public data openness accelerate new quality productive forces? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1409-1427.
    5. Leek, Lauren Caroline & Bischl, Simeon, 2024. "How Central Bank Independence Shapes Monetary Policy Communication: A Large Language Model Application," SocArXiv yrhka, Center for Open Science.
    6. repec:osf:socarx:yrhka_v1 is not listed on IDEAS
    7. Bradford, Ashley C. & Fu, Wei & You, Shijun, 2024. "The devastating dance between opioid and housing crises: Evidence from OxyContin reformulation," Journal of Health Economics, Elsevier, vol. 98(C).
    8. Li, Daiyue & Jin, Yanhong & Cheng, Mingwang, 2024. "Unleashing the power of industrial robotics on firm productivity: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 500-520.
    9. Jaworski, Krystian & Olipra, Jakub, 2025. "Cutting VAT rate on food products in a high-inflation environment. Does it work out?," Food Policy, Elsevier, vol. 131(C).
    10. Kim, Dongin & Steinbach, Sandro & Zurita, Carlos, 2024. "Deep trade agreements and agri-food global value chain integration," Food Policy, Elsevier, vol. 127(C).
    11. Balia, S.; & Brau, R.; & Pau, S.;, 2025. "One plus one makes less than two? Consolidation policies and mortality in the Italian NHS," Health, Econometrics and Data Group (HEDG) Working Papers 25/02, HEDG, c/o Department of Economics, University of York.
    12. Cui, Yi, 2024. "Place-based policies and capital misallocation: Evidence from Chinese cities," Economic Systems, Elsevier, vol. 48(4).
    13. Li, Rui & Yang, Huiting & Zhang, Jun, 2024. "Agricultural tax reform, capital investment, and structural transformation in China," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 509-522.
    14. Philipp Barteska & Jay Euijung Lee, 2025. "Personnel is policy (implementation): Bureaucrats and the Korean export miracle," CEP Discussion Papers dp2099, Centre for Economic Performance, LSE.
    15. Malhotra, Gurleen Kaur & Dubey, Amlendu, 2025. "Increasing taxes on ‘bads’ and reducing them on ‘goods’: A double dividend hypothesis of carbon taxation," Journal of Policy Modeling, Elsevier, vol. 47(1), pages 118-133.
    16. Adamson Bryant, 2025. "Place-Based Policies for Neighborhood Improvement: Evidence from Promise Zones," Papers 2503.05946, arXiv.org.
    17. Andrea Mattozzi & Samuel Nocito & Francesco Sobbrio, 2022. "Fact-Checking Politicians," CESifo Working Paper Series 10122, CESifo.
    18. Bailey, Warren B. & Cao, Xiaping & Yang, Zhenyi & Zhou, Sili, 2024. "Who leads and who follows? The cross-border peer effect in investment by Chinese and US firms," Journal of International Economics, Elsevier, vol. 147(C).
    19. Meng, Ning & Milner, Chris & Song, Huasheng, 2020. "Antidumping and heterogeneous quality adjustment of multi-product firms: Evidence from Chinese exporters," Economic Modelling, Elsevier, vol. 92(C), pages 147-161.
    20. Dai, Yanke & Du, Ting & Gao, Huasheng & Gu, Yan & Wang, Yongqin, 2024. "Patent pledgeability, trade secrecy, and corporate patenting," Journal of Corporate Finance, Elsevier, vol. 85(C).
    21. Gørtz, Mette & Sander, Sarah & Sevilla, Almudena, 2025. "Does the child penalty strike twice?," European Economic Review, Elsevier, vol. 172(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:201:y:2025:i:c:s0301421525000631. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.