Heterogeneous responses of firms to trade protection

Jozef Konings and Hylke Vandenbussche

Journal of International Economics, 2008, vol. 76, issue 2, 371-383

Abstract: This paper estimates the effect of antidumping protection on the productivity of domestic import-competing firms. Two key results emerge. First, the productivity of the average firm receiving protection moderately improves, but this is never sufficient to close the productivity gap with firms never involved in antidumping cases. Second, allowing for firm heterogeneity reveals that domestic firms with relatively low initial productivity - laggard firms - have productivity gains during protection, while firms with high initial productivity - frontier firms - experience productivity losses during protection. These results are consistent with recent theories showing that trade policy affects firms differently depending on their initial productivity.

Keywords: Total; factor; productivity; Antidumping; protection; Firm; heterogeneity; F13; L; 41; O30; C2 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (72)

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Related works:
Working Paper: Heterogeneous responses of firms to trade protection (2009)
Working Paper: Heterogeneous Responses of Firms to Trade Protection (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:76:y:2008:i:2:p:371-383

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