How Exporters Respond to Antidumping Investigations?
43 Pages Posted: 14 May 2012
Date Written: May 1, 2012
Using China Customs data that cover monthly transactions of all Chinese exporters, we investigate how Chinese exporters respond to U.S. antidumping investigations during the 2000-2006 period. Our difference-in-differences analysis uncovers a number of findings: the substantial trade-dampening effect at the product level operates mostly at the extensive margin (i.e., a decrease in the number of exporters) rather than the intensive margin (i.e., a decrease in the export volume per exporter); direct exporters are more likely to exit the U.S. market than trade intermediaries upon both the affirmative preliminary and final ITC determinations; multi-product direct exporters are more likely to exit the U.S. market than single-product direct exporters upon the affirmative preliminary ITC determination, but the opposite holds upon the affirmative final ITC determination; and little price adjustment to antidumping investigations are found at either the product level or firm-product level. We then provide a coherent explanation to the aforementioned findings based on recent developments in trade theories.
Keywords: antidumping investigations, difference-in-differences estimation, extensive and intensive margins, trade intermediaries, single- versus multi-product exporters
JEL Classification: F13, D22, F14, L25
Suggested Citation: Suggested Citation