TY - JOUR
T1 - Heterogeneous responses of firms to trade protection
AU - Konings, Jozef
AU - Vandenbussche, Hylke
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008/12
Y1 - 2008/12
N2 - This paper estimates the effect of antidumping protection on the productivity of domestic import-competing firms. Two key results emerge. First, the productivity of the average firm receiving protection moderately improves, but this is never sufficient to close the productivity gap with firms never involved in antidumping cases. Second, allowing for firm heterogeneity reveals that domestic firms with relatively low initial productivity - laggard firms - have productivity gains during protection, while firms with high initial productivity - frontier firms - experience productivity losses during protection. These results are consistent with recent theories showing that trade policy affects firms differently depending on their initial productivity.
AB - This paper estimates the effect of antidumping protection on the productivity of domestic import-competing firms. Two key results emerge. First, the productivity of the average firm receiving protection moderately improves, but this is never sufficient to close the productivity gap with firms never involved in antidumping cases. Second, allowing for firm heterogeneity reveals that domestic firms with relatively low initial productivity - laggard firms - have productivity gains during protection, while firms with high initial productivity - frontier firms - experience productivity losses during protection. These results are consistent with recent theories showing that trade policy affects firms differently depending on their initial productivity.
KW - Antidumping protection
KW - C2
KW - F13
KW - Firm heterogeneity
KW - L 41
KW - O30
KW - Total factor productivity
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U2 - 10.1016/j.jinteco.2008.08.002
DO - 10.1016/j.jinteco.2008.08.002
M3 - Article
AN - SCOPUS:55749097649
VL - 76
SP - 371
EP - 383
JO - Journal of International Economics
JF - Journal of International Economics
SN - 0022-1996
IS - 2
ER -