How Do Exporters Respond to Antidumping Investigations?

HKIMR Working Paper No.19/2013

47 Pages Posted: 28 Oct 2013

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: October 28, 2013

Abstract

Using monthly transaction data covering all Chinese exporters over the 2000-2006 period, we investigate how Chinese exporters respond to U.S. antidumping investigations. We find that antidumping investigations cause a substantial decrease in the total export volume at the HS-6 digit product level, and that this trade-dampening effect is due to a significant decrease in the number of exporters, yet a modest decrease in the export volume per surviving exporter. We also find that the bulk of the decrease in the number of exporters is exerted by less productive exporters, by direct exporters as opposed to trade intermediaries, and by single-product direct exporters as opposed to their multi-product counterparts. Combined with the existing studies on the effects that antidumping investigations have on protected firms, our study helps piece together a complete picture of the effects of antidumping investigations.

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 Do Exporters Respond to Antidumping Investigations? (October 28, 2013). HKIMR Working Paper No.19/2013, Available at SSRN: https://ssrn.com/abstract=2346205 or http://dx.doi.org/10.2139/ssrn.2346205

Yi Lu

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 (Contact Author)

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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