GEP 2020/08: Export performance under domestic anti-dumping protection

Abstract

This paper investigates the effect of import protection on export performance at the firm-product level. We exploit product-specific information on anti-dumping (AD) measures imposed by Peru along with several indicators on the performance of Peruvian exporting firms across and within destination markets. Findings indicate that the impact of protection on export performance depends on which economies are targeted by domestic AD protection. Duties towards China are associated with significantly higher prices, especially among small exporting firms. These firms also reduce their shipments, as suggested by frameworks stressing the role of adjustment costs. In contrast, when AD measures are imposed on competitors from middle- and high-income countries, exporters decrease prices and increase quantities, consistent with the presence of learning curves and economies of scale.

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Authors

Andrea Ciani and Joel Stiebale

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