Abstract

http://ssrn.com/abstract=614881
 
 

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Antidumping Protection and Productivity Growth of Domestic Firms


Jozef Konings


Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Hylke Vandenbussche


Catholic University of Leuven (KUL), LICOS & CEPR

September 2004

CEPR Discussion Paper No. 4620

Abstract:     
In this Paper, we provide empirical evidence that Antidumping (AD) Protection can induce technological catching-up by domestic firms affected by the import protection. We identify a panel of 1,793 import-competing domestic firms between 1993 and 2000, directly affected by AD cases that were initiated in 1996. Using a difference-in-difference approach, we find evidence of increased Total Factor Productivity (TFP) growth for firms protected by AD measures compared to firms that did not receive protection. Our analysis indicates, however, that the effect of protection depends on the 'distance to the frontier firm' in the industry. While protection raises TFP growth of 'laggard' firms, the reverse holds for domestic firms that are close to the efficiency frontier. These results confirm recent theoretical work supporting the view that protection can induce technological catching-up.

Number of Pages in PDF File: 50

Keywords: Total factor productivity, antidumping protection, technological catching-up

JEL Classification: C20, F13, L41, O30

working papers series


Date posted: November 4, 2004  

Suggested Citation

Konings, Jozef and Vandenbussche, Hylke, Antidumping Protection and Productivity Growth of Domestic Firms (September 2004). CEPR Discussion Paper No. 4620. Available at SSRN: http://ssrn.com/abstract=614881

Contact Information

Jozef Konings (Contact Author)
Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )
Deberiotstraat, 34
Leuven, B-3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Hylke Vandenbussche
Catholic University of Leuven (KUL), LICOS & CEPR ( email )
Faculty of Economics
Naamsestraat 69
B-3000 Leuven, 3000
Belgium
+32 16 326 920 (Phone)
+32 16 326 732 (Fax)
HOME PAGE: http://www.econ.kuleuven.be/public/NDBAD40/
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