Trade barrier and misallocations: The case of the photovoltaic manufacturing industry in China

Yen-Po Chen, Ting-Wei Lai, Wen-Chieh Lee and Hao-Chung Li ()

International Review of Economics & Finance, 2017, vol. 52, issue C, 352-367

Abstract: We measure resource misallocations among Chinese photovoltaic (PV) exporters before and after the EU imposed antidumping duties (ADs) and countervailing duties (CVDs) in 2011.We find that improvements in total factor productivity can be attributed to improvements in the production efficiency of state-owned enterprises (SOEs) and the convergent returns of labor and capital inputs between SOEs and non-state-owned enterprises (NSOEs) after 2011. Surprisingly, our results indicate that improvements in extensive-margin misallocations due to exiting zombie SOEs do not contribute substantially to improving industry-level production efficiency, and we conclude that reallocating inputs among existing firms is more important.

Keywords: Antidumping duty; Countervailing duties; Photovoltaics industry; Resource misallocation; State-owned enterprises (search for similar items in EconPapers)
JEL-codes: F12 F13 O24 O25 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:52:y:2017:i:c:p:352-367

DOI: 10.1016/j.iref.2017.03.014

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