How Do Exporters Respond to Antidumping Investigations?
HKIMR Working Paper No.19/2013
47 Pages Posted: 28 Oct 2013
Date Written: October 28, 2013
Using monthly transaction data covering all Chinese exporters over the 2000-2006 period, we investigate how Chinese exporters respond to U.S. antidumping investigations. We find that antidumping investigations cause a substantial decrease in the total export volume at the HS-6 digit product level, and that this trade-dampening effect is due to a significant decrease in the number of exporters, yet a modest decrease in the export volume per surviving exporter. We also find that the bulk of the decrease in the number of exporters is exerted by less productive exporters, by direct exporters as opposed to trade intermediaries, and by single-product direct exporters as opposed to their multi-product counterparts. Combined with the existing studies on the effects that antidumping investigations have on protected firms, our study helps piece together a complete picture of the effects of antidumping investigations.
Keywords: Antidumping Investigations, Difference-In-Differences Estimation, Extensive and Intensive Margins, Trade Intermediaries, Single- versus Multi-Product Exporters
JEL Classification: F13, D22, F14, L25
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