Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 371-383 |
| Number of pages | 13 |
| Journal | Journal of International Economics |
| Volume | 76 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Dec 2008 |
| Externally published | Yes |
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Keywords
- Antidumping protection
- C2
- F13
- Firm heterogeneity
- L 41
- O30
- Total factor productivity
ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
Heterogeneous responses of firms to trade protection. / Konings, Jozef; Vandenbussche, Hylke.
In: Journal of International Economics, Vol. 76, No. 2, 12.2008, p. 371-383.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Heterogeneous responses of firms to trade protection
AU - Konings, Jozef
AU - Vandenbussche, Hylke
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
UR - http://www.scopus.com/inward/record.url?scp=55749097649&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=55749097649&partnerID=8YFLogxK
U2 - 10.1016/j.jinteco.2008.08.002
DO - 10.1016/j.jinteco.2008.08.002
M3 - Article
VL - 76
SP - 371
EP - 383
JO - Journal of International Economics
JF - Journal of International Economics
SN - 0022-1996
IS - 2
ER -