Heterogeneous responses of firms to trade protection

By Jozef Konings, H. Vandenbussche. 2008

150 citations recorded by the source corpus.

This paper uses EU firm-level panel data to estimate the effect of Antidumping (AD) protection on the productivity of EU domestic firms in import-competing industries. We find that firms with relatively low initial productivity - laggard firms - have productivity gains during AD protection, while firms with high initial productivity - frontier firms - experience productivity losses. While the productivity of the average firm is moderately improved during AD protection, productivity remains below that of firms never involved in AD cases, thus questioning the desirability of protection. Our empirical results are consistent with recent theoretical work supporting the view that trade policy can have a differential effect on firms depending on their initial productivity.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/f18e3b2401688646669bcf03a1207e07d32955d3

How researchers see this paper

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In Economics and Econometrics

1. Aida Caldera
2. Gonzague Vannoorenberghe
3. Joel Stiebale

In Political Science and International Relations

1. Aida Caldera
2. Gonzague Vannoorenberghe

Citations in the corpus

• Firm-level volatility and exports (2012, background): “A large literature, starting with Rodrik (1998), has examined this link empirically.”
• Plant-Level Responses to Antidumping Duties: Evidence from U.S. Manufacturers (2011, unknown): “…from those that do not apply and a “government-selection bias” that arises if the government bases its decision of whether to 4 The primary result in Konings and Vandenbussche (2008) is that antidumping duties allow for technological catch-up by low-productivity firms, while firms with high…”
• Innovation and exporting: evidence from Spanish manufacturing firms (2010, methodology): “This estimation procedure is standard in the recent trade literature (de Loecker 2007; Konings and Vandenbussche 2008).”