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Antidumping and Plant Closure

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  • Robert Feinberg
  • James Hartigan

Abstract

As an indicator of 'material injury' in antidumping petitions, companies often claim plant closings have been caused by unfairly-traded imports or threaten plant closings if no relief is provided. This paper analyzes a sample of 91 companies involved in US antidumping proceedings in the 2002 to 2005 period to examine the determinants of plant closing activity with particular emphasis on the role of the antidumping process in the timing of plant closing announcements. We find that larger firms and firms in declining sectors are more likely to close plants, and that the prize of Byrd Amendment funds may help keep plants in operation (especially for smaller firms for whom these funds are likely to be more important). However, there does not appear to be a consistent and significant relationship between antidumping petitions and the timing of plant closings.

Suggested Citation

  • Robert Feinberg & James Hartigan, 2007. "Antidumping and Plant Closure," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(1), pages 99-109.
    • Handle: RePEc:taf:ijecbs:v:14:y:2007:i:1:p:99-109
    DOI: 10.1080/13571510601097165
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    References listed on IDEAS

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    1. Andrew B. Bernard & J. Bradford Jensen, 2002. "The Deaths of Manufacturing Plants," NBER Working Papers 9026, National Bureau of Economic Research, Inc.
    2. John H. Jackson, 1997. "The World Trading System, 2nd Edition: Law and Policy of International Economic Relations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600277, December.
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    Cited by:

    1. Jozef KONINGS & Hylke VANDENBUSSCHE, 2009. "Antidumping Protection hurts Exporters: Firm-level evidence from France," LIDAM Discussion Papers IRES 2009017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Bruce Blonigen & Benjamin Liebman & Wesley Wilson, 2013. "Antidumping and Production-Line Exit: The Case of the US Steel Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(4), pages 395-413, June.
    3. Benjamin Liebman & Kasaundra Tomlin, 2023. "The long‐term impact of trade protection," The World Economy, Wiley Blackwell, vol. 46(3), pages 532-559, March.

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