Antidumping Protection Hurts Exporters: Firm-Level Evidence from France

Abstract

Antidumping Protection hurts Exporters: Firm-level evidence from France* 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 nonexporters 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.JEL Classification: C2 and F13

Performance of small- and medium-sized enterprises in services trade: evidence from French firms

“…This is especially true for information on a firm's exporter status. For this reason and following related literature on the determinants of exports in manufacturing industries (see, e.g., Stiebale 2011, Konings andVandenbussche 2013), we restrict our empirical analysis to service firms located in France. Only recently, Engel et al (2013) also utilized a sample of French manufacturing, construction, trade and service firms from the AMADEUS database to analyze their foreign market entry and exit decisions, respectively.…”

Chinese Firm and Industry Reactions to Antidumping Initiations and Measures

“…As heterogeneous firm trade theory has evolved in recent years, recent papers have also studied AD effects in this theoretical framework. These papers mainly analyze firms' productivity response to AD protection, and include Konings and Vandenbussche (2008a), Konings and Vandenbussche (2008b) and Pierce (2009). There is also some literature analyzing AD effects in other ways.…”

Import dynamics and demands for protection

“…Prusa () exploits product‐level US trade data, while Pierce () adds a plant‐level dimension. Konings and Vandenbussche () investigate the impact of European AD cases using firm‐level export data from France and product‐level trade data from the European Union. Besedeš and Prusa () use a survival model to estimate the breaking of trade links following a US AD case.…”