Antidumping protection hurts exporters: firm-level evidence from France
(2009) , 36 pages
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- 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 non-exporters. 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.
- Affiliations
European Commission Belgium and BEPA KUL LICOS
Citations
Konings, J., & Vandenbussche, H. (2009). Antidumping protection hurts exporters: firm-level evidence from France (Core Discussion Papers 2009/42). https://hdl.handle.net/2078.5/249779