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

51 Pages Posted: 25 Nov 2008 Last revised: 8 Feb 2021

See all articles by Irene Brambilla

Irene Brambilla

Universidad Nacional de La Plata

Guido G. Porto

World Bank; National Bureau of Economic Research (NBER)

Alessandro Tarozzi

Universitat Pompeu Fabra - Department of Economics and Business

Date Written: November 2008

Abstract

In 2003, after claims of dumping, the U.S. imposed heavy tariffs on imports of catfish from Vietnam. As a result, Vietnamese exports of catfish to the U.S. market sharply declined. Using a panel data of Vietnamese households, we explore the responses of catfish producers in the Mekong delta between 2002 and 2004. We study adjustments not only in catfish aquaculture but also in other economic activities. We find that, over this period, the rate of income growth was significantly lower among households relatively more involved in catfish farming in 2002. The source of this slower growth is explained by a relative decline in both catfish income and revenues from other miscellaneous farms activities such as poultry and livestock farming. Households did not adjust labor supply, most likely because of off-farm employment limitations. We also document that households more exposed to the shock reduced the share of investment assigned to catfish, while substituting into agriculture.

Suggested Citation

Brambilla, Irene and Porto, Guido and Tarozzi, Alessandro, Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish (November 2008). NBER Working Paper No. w14495, Available at SSRN: https://ssrn.com/abstract=1305505

Irene Brambilla (Contact Author)

Universidad Nacional de La Plata ( email )

La Plata, Buenos Aires 1900
Argentina

Guido Porto

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/gporto

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alessandro Tarozzi

Universitat Pompeu Fabra - Department of Economics and Business ( email )

Barcelona
Spain

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