Purchase - $5.00

Antidumping Protection and Productivity Growth of Domestic Firms

50 Pages Posted: 4 Nov 2004  

Jozef Konings

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

Hylke Vandenbussche

Catholic University of Leuven (KUL), LICOS & CEPR

Date Written: September 2004

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.

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

JEL Classification: C20, F13, L41, O30

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: https://ssrn.com/abstract=614881

Jozef Konings (Contact Author)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)

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/

Paper statistics

Downloads
17
Abstract Views
1,131