Citation

Discussion Paper Details

Please find the details for DP6724 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Heterogeneous Responses of Firms to Trade Protection

Author(s): Jozef Konings and Hylke Vandenbussche

Publication Date: February 2008

Keyword(s): antidumping protection, firm heterogeneity and total factor productivity

Programme Area(s): International Trade and Regional Economics

Abstract: 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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6724

Bibliographic Reference

Konings, J and Vandenbussche, H. 2008. 'Heterogeneous Responses of Firms to Trade Protection'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6724