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Antidumping Protection hurts Exporters: Firm-level evidence from France

Author

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  • Jozef KONINGS

    (CATHOLIC UNIVERSITY OF LEUVEN, Department of Economics and LICOS, Belgium and BEPA, European Commission)

  • Hylke VANDENBUSSCHE

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Center for Operations Research and Econometrics (CORE))

Abstract

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.

Suggested Citation

  • 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).
    • Handle: RePEc:ctl:louvir:2009017
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    Cited by:

    1. Christian Gormsen, 2011. "Antidumping with heterogeneous firms," Post-Print hal-00663024, HAL.
    2. Christian Gormsen, 2011. "Anti-dumping with heterogeneous firms," International Economics, CEPII research center, issue 125, pages 41-64.
    3. Veysel Avsar, 2013. "Antidumping, Retaliation Threats, and Export Prices," The World Bank Economic Review, World Bank, vol. 27(1), pages 133-148.
    4. Ray-Yun Chang & Hong Hwang & Cheng-Hau Peng, 2020. "Antidumping protection and welfare in a differentiated duopoly," The Japanese Economic Review, Springer, vol. 71(3), pages 421-446, July.
    5. Christian Gormsen, 2011. "Antidumping with heterogeneous firms," PSE-Ecole d'économie de Paris (Postprint) hal-00663024, HAL.
    6. repec:lic:licosd:28511 is not listed on IDEAS
    7. Avsar Veysel, 2017. "The Anatomy of Trade Deflection," Global Economy Journal, De Gruyter, vol. 17(4), pages 1-11, December.
    8. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," LIDAM Discussion Papers IRES 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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