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Cross-product and cross-market adjustments within multiproduct firms: Evidence from antidumping actions

Author

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  • Bao, Xiaohua
  • Blonigen, Bruce A.
  • Yu, Zhi

Abstract

This paper uses detailed firm–product–country-level export data to examine how an AD action, a very targeted trade policy against a specific product in a specific export destination, affects a multiproduct firm’s price and quantity decisions across its other products and export destinations. We find robust evidence for substantial interdependencies across a multiproduct firm’s products and markets, including a new phenomenon we call within-firm cross-product trade deflection whereby an AD action against one of the firm’s products in one of its export destinations is associated with increased sales of its other products across all markets. These effects are generally stronger for private (versus state-owned) firms and larger firms, and for deflection from a firm’s non-core products to core product. Our highly detailed data and analytical approach allow us to disentangle the extent to which these cross-product effects stem from cost and/or demand interdependencies within the multiproduct firm.

Suggested Citation

  • Bao, Xiaohua & Blonigen, Bruce A. & Yu, Zhi, 2026. "Cross-product and cross-market adjustments within multiproduct firms: Evidence from antidumping actions," Journal of International Economics, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:inecon:v:159:y:2026:i:c:s0022199625001631
    DOI: 10.1016/j.jinteco.2025.104206
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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