Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish

Irene Brambilla, Guido Porto and Alessandro Tarozzi

The Review of Economics and Statistics, 2012, vol. 94, issue 1, 304-319

Abstract: In 2003, after claims of dumping, the United States imposed heavy tariffs on Vietnamese catfish, which led to a collapse of imports. We use panel data to explore household responses in the catfish-producing Mekong delta between 2002 and 2004 and find that income growth was significantly slower among households relatively more involved in catfish farming in 2002. This is explained by a relative decline in both catfish income and revenues from other miscellaneous farm activities. Labor supply did not adjust, most likely because of off-farm employment limitations. Households more exposed to the shock reduced the share of investment assigned to catfish while substituting into agriculture. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2012
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