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Plant-Level Responses to Antidumping Duties: Evidence from U.S. Manufacturers

  • Justin Pierce

This paper describes the effects of a temporary increase in tariffs on the performance and behavior of U.S. manufacturers. Using antidumping duties as an example of temporary protection, I compare the responses of protected manufacturers to those predicted by models of trade with heterogeneous firms. I find that apparent increases in revenue productivity associated with antidumping duties are primarily due to increases in prices and mark-ups, as physical productivity falls among protected plants. Moreover, antidumping duties slow the reallocation of resources from less productive to more productive uses by reducing product-switching behavior among protected plants.

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File URL: ftp://ftp2.census.gov/ces/wp/2009/CES-WP-09-38R.pdf
File Function: First version, 2011
Download Restriction: no

File URL: ftp://ftp2.census.gov/ces/wp/2009/CES-WP-09-38.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-38r.

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Length: 53 pages
Date of creation: Oct 2009
Date of revision: Jul 2011
Handle: RePEc:cen:wpaper:09-38r
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