Are anti-dumping investigations against China ineffective in curbing innovation? Evidence from firms’ patent filings

Lejing Ao

The Journal of International Trade & Economic Development, 2025, vol. 34, issue 1, 78-101

Abstract: This paper empirically investigates the effect of anti-dumping investigations on export firm innovation performance using Chinese firm-level patent filings data and anti-dumping case from 2000 to 2013. By employing the staggered difference-in-differences strategy, our empirical evidence shows that anti-dumping investigations imposed on firms lead to an improvement in innovation rather than suppression. Further examination identifies that the trade diversion effect is a crucial mechanism through which anti-dumping investigations affect firm innovation. We find that firms are experiencing a significant increase in exports of investigated products to non-involved countries, while also expanding their export destinations and diversifying the range of exported products. Heterogeneity analysis indicates that anti-dumping charges significantly promote innovation in high-productivity firms and multi-product exporting enterprises, while financial constraints are identified as a crucial factor restricting innovation.

Date: 2025
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DOI: 10.1080/09638199.2024.2303591

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