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Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish

  • Irene Brambilla

    (Universidad de La Plata)

  • Guido Porto

    (Universidad de La Plata)

  • Alessandro Tarozzi

    (Universitat Pompeu Fabra)

In 2003, after claims of dumping, the United States imposed heavy tariffs on Vietnamese catfish, which led to a collapse of imports. We use panel data to explore household responses in the catfish-producing Mekong delta between 2002 and 2004 and find that income growth was significantly slower among households relatively more involved in catfish farming in 2002. This is explained by a relative decline in both catfish income and revenues from other miscellaneous farm activities. Labor supply did not adjust, most likely because of off-farm employment limitations. Households more exposed to the shock reduced the share of investment assigned to catfish while substituting into agriculture. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 94 (2012)
Issue (Month): 1 (February)
Pages: 304-319

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Handle: RePEc:tpr:restat:v:94:y:2012:i:1:p:304-319
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