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Antidumping Protection hurts Exporters: Firm-level evidence from France

Author

Listed:
  • Vandenbussche, Hylke
  • Konings, Jozef
Abstract
This paper empirically evaluates the effects of antidumping measures on the exports of protected firms. While antidumping protection raises the domestic sales of the more ?traditional? non-exporting firms on the protected market with about 5%, it negatively affects the firm-level exports 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. The drop in firm-level exports 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 affects the extensive margin of exporters but to a lesser extent. Initial exporters face a marginally higher probability to stop exporting during protection compared to unprotected firms. 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 arising from the heterogeneous firm literature. We also discuss the importance of our findings for policy.

Suggested Citation

  • Vandenbussche, Hylke & Konings, Jozef, 2009. "Antidumping Protection hurts Exporters: Firm-level evidence from France," CEPR Discussion Papers 7330, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:7330
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    Cited by:

    1. Veysel Avsar, 2013. "Antidumping, Retaliation Threats, and Export Prices," The World Bank Economic Review, World Bank, vol. 27(1), pages 133-148.
    2. Christian Gormsen, 2011. "Antidumping with heterogeneous firms," Post-Print hal-00663024, HAL.
    3. Avsar Veysel, 2017. "The Anatomy of Trade Deflection," Global Economy Journal, De Gruyter, vol. 17(4), pages 1-11, December.
    4. Christian Gormsen, 2011. "Anti-dumping with heterogeneous firms," International Economics, CEPII research center, issue 125, pages 41-64.
    5. 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.
    6. Christian Gormsen, 2011. "Antidumping with heterogeneous firms," PSE-Ecole d'économie de Paris (Postprint) hal-00663024, HAL.
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    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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    More about this item

    Keywords

    Antidumping; Firm-level exports; Intensive margin; Extensive margin; Productivity; Dif-in dif;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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