Anti-dumping duty and firm heterogeneity
Subtitle: evidence from Korea
By: Seungrae Lee and Joo Yeon Sun
Contributors: Sun, Joo Yeon
Series: KIEP working paper -- 13-04; KIEP working paper -- 13-04.
Publisher: KIEP (Korea Institute for International Economic Policy)
Published: 2013
Place of publication: Seoul
Language: eng
Number of pages: 45
ISBN-13: 9788932242385
Subjects: Antidumping duties; Industrial productivity; Commercial policy
Description: This paper examines the imposition of Anti-dumping (AD) duties on foreign imported products in Korea. We use panel data for Korean firms between 2002 and 2010 and estimate the changed firm-level productivity of domestic import-competing firms before and after the imposition of duties. In contrast to recent research analyzing the effects of AD measures on firm performance, we find evidence of a decrease in estimated productivity of protected domestic firms during the AD protection period. We then discuss the channels behind our results and find that the average productivity losses are not driven by the changes in company account variables that influence firm productivity during the protection period. Instead, we find that AD protection has heterogeneous treatment effects on firm productivity depending on the market structure.