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Antidumping protection hurts exporters : firm-level evidence from France

  • KONINGS, Jozef

    ()

    (Catholic University of Leuven and LICOS, Department of Economics)

  • VANDENBUSSCHE, Hylke

    ()

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Firms protected by antidumping measures do not unequivocally benefit from them. Antidumping protection benefits non-exporters active on the protected market by raising their domestic sales, but hurts exporters of similar products as the protected ones. Export sales of protected firms fall by almost 8% compared to a relevant control group of unprotected firms. This effect more than doubles for firms that are global, i.e. firms with foreign affiliates. Measured at the product-level, extra-EU exports of goods protected by antidumping fall by 36% while exports to target countries fall by as much as 66% following protection. Protection also has an effect on the extensive margin, by raising the probability to start exporting for firms that were initially nonexporters. Existing exporters face a higher probability to stop exporting during protection. Finally, we find that the productivity of exporters falls while that of non-exporters rises during antidumping protection. We offer a number of plausible explanations for our findings that stem from the heterogeneous firm literature. We also discuss the importance of our findings for policy.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009042.

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Date of creation: 01 Jul 2009
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Handle: RePEc:cor:louvco:2009042
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