Title: Heterogeneous responses of firms to trade protection
Authors: Vandenbussche, Hylke ×
Konings, Joep #
Issue Date: Dec-2008
Series Title: Journal of International Economics vol:76 issue:2 pages:371-383
Abstract: This paper estimates the effect of antidumping protection on the productivity of domestic importcompeting firms. Two key results emerge. First, the productivity of the average firm receiving protection moderately improves, but this is never sufficient to close the productivity gap with firms never involved in antidumping cases. Second, allowing for firm heterogeneity reveals that domestic firms with relatively low initial productivity – laggard firms – have productivity gains during protection, while firms with high initial productivity – frontier firms – experience
productivity losses during protection. These results are consistent with recent theories showing that trade policy affects firms differently depending on their initial productivity.
ISSN: 0022-1996
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Administrative and Support Services, Faculty of Economics and Business, Leuven - miscellaneous (-)
LICOS - Centre for Institutions and Economic Performance, Leuven
Research Center of Monetary and Information Economics, Leuven
Research Center Accountancy, Leuven
× corresponding author
# (joint) last author

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