How exporters respond to antidumping investigations?

Lu, Yi and Tao, Zhigang and Zhang, Yan (2012): How exporters respond to antidumping investigations?

Abstract

Using China Customs data that cover monthly transactions of all Chinese exporters, we investigate how Chinese exporters respond to U.S. antidumping investigations during the 2000-2006 period. Our difference-in-differences analysis uncovers a number of findings: (1) the substantial trade-dampening effect at the product level operates mostly at the extensive margin (i.e., a decrease in the number of exporters) rather than the intensive margin (i.e., a decrease in the export volume per exporter); (2) direct exporters are more likely to exit the U.S. market than trade intermediaries upon both the affirmative preliminary and final ITC determinations; (3) multi-product direct exporters are more likely to exit the U.S. market than single-product direct exporters upon the affirmative preliminary ITC determination, but the opposite holds upon the affirmative final ITC determination; and (4) little price adjustment to antidumping investigations are found at either the product level or firm-product level. We then provide a coherent explanation to the aforementioned findings based on recent developments in trade theories.

• Item Type: MPRA Paper
• Language: English
• Keywords: Antidumping investigations; Difference-in-differences estimation; Extensive and intensive margins; Trade intermediaries; Single- versus multi-product exporters
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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