Abstract

http://ssrn.com/abstract=2456479
 


 



Trade Diversion as Firm Adjustment to Trade Policy: Evidence from EU Antidumping Duties on Vietnamese Footwear


Van H. Pham


Baylor University - Department of Economics

Toan Truong Nguyen


Vietnam Netherlands Programme

Nguyen Trong Hoai


University of Economics Ho Chi Minh City

June 18, 2014


Abstract:     
This paper evaluates the impact of the 2006 European Union antidumping action on Vietnamese footwear in three markets: imports to the EU, footwear producers in Vietnam, and the trade diversionary adjustment of Vietnamese firms in the U.S. market. We find that the AD action reduced Vietnamese footwear imports to the EU by as much as 65%. This is economically significant considering that the EU makes up almost two-thirds of Vietnam's footwear exports and footwear is among the top four export industries for Vietnam. Consistent with predictions of our model, we also find evidence of trade diversion by Vietnamese producers from the EU to the U.S. market. Our difference-in-difference estimates of the AD actions on the value of Vietnamese footwear imports to the U.S. ranged from 69-71% over the period 2004-2007 and 69-72% in terms of quantity. These results highlight the (perhaps unintended) indirect effects of trade policy in third markets that can result from firms adjusting to trade barriers. Our results are robust to triple difference specifications where we adjust for trend-differences and a series of placebo specifications.

Number of Pages in PDF File: 36

Keywords: Antidumping, Trade Diversion, Vietnam, Footwear

JEL Classification: F13, F15, L6

working papers series


Download This Paper

Date posted: June 20, 2014  

Suggested Citation

Pham, Van H. and Nguyen, Toan Truong and Hoai, Nguyen Trong, Trade Diversion as Firm Adjustment to Trade Policy: Evidence from EU Antidumping Duties on Vietnamese Footwear (June 18, 2014). Available at SSRN: http://ssrn.com/abstract=2456479 or http://dx.doi.org/10.2139/ssrn.2456479

Contact Information

Van H. Pham (Contact Author)
Baylor University - Department of Economics ( email )
One Bear Place #98003
Waco, TX 76798
United States
(254) 710-3521 (Phone)
(254) 710-6142 (Fax)
HOME PAGE: http://www.baylor.edu/van_pham
Toan Truong Nguyen
Vietnam Netherlands Programme ( email )
1A Hoang Dieu, Phu Nhuan District
Ho Chi Minh city, Ho Chi Minh city
Vietnam
Nguyen Trong Hoai
University of Economics Ho Chi Minh City ( email )
59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam
Feedback to SSRN


Paper statistics
Abstract Views: 104
Downloads: 11

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.281 seconds