How Exporters Respond to Antidumping Investigations?

43 Pages Posted: 14 May 2012

See all articles by Yi Lu

Yi Lu

National University of Singapore (NUS) - Department of Economics

Zhigang Tao

The University of Hong Kong - School of Business

Yan Zhang

Shanghai University of Finance and Economics - School of Economics

Date Written: May 1, 2012

Abstract

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

Lu, Yi and Tao, Zhigang and Zhang, Yan, How Exporters Respond to Antidumping Investigations? (May 1, 2012). Available at SSRN: https://ssrn.com/abstract=2057440 or http://dx.doi.org/10.2139/ssrn.2057440

Yi Lu (Contact Author)

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore
65-65166834 (Phone)

HOME PAGE: http://ylu6.weebly.com

Zhigang Tao

The University of Hong Kong - School of Business ( email )

Meng Wah Complex
Pokfulam Road
Hong Kong
China
(852) 2857-8223 (Phone)
(852) 2858-5614 (Fax)

Yan Zhang

Shanghai University of Finance and Economics - School of Economics ( email )

777 Guoding Road
Shanghai, 200433
China

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