Skip to main content
SpringerLink
Log in

Antidumping Duties and Plant-Level Restructuring

  • Published:
Review of Industrial Organization Aims and scope Submit manuscript

Abstract

This paper examines the effect of antidumping duties on the restructuring activities of protected plants. Using a dataset that contains the full population of U.S. manufacturers, I find that protected plants increase their capital intensities modestly relative to unprotected plants, but only when antidumping duties have been in place for a sufficient duration. I find little effect of antidumping duties on a proxy for the skilled labor intensity of protected plants.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. See Konings and Vandenbussche (2008) and Pierce (2011).

  2. See Pierce and Schott (2012) for more details.

  3. See Bown (2012).

  4. See, for example, Berman et al. (1994) and Bernard and Jensen (1997).

  5. The table reports means and standard deviations for all continuous variables that are employed in this paper. The Census Bureau does not permit release of minimum and maximum data, as they represent survey responses of individual establishments. Review of minimum and maximum data by the author did not reveal any anomalous observations.

  6. In the time period examined in this paper, five of the 148 antidumping investigations completed ended with suspension agreements as the only form of protection. Under this arrangement, foreign firms agree to stop dumping, in exchange for suspension of the antidumping investigation. Because data on the effective duty rate—considered later in the paper—are unavailable for these investigations, they have been excluded from this analysis.

  7. These two sources of bias were first discussed in Konings and Vandenbussche (2008).

  8. The regressors are also drawn in part from Blonigen and Park’s (2004) analysis of the determinants of success in antidumping petitions. The estimation is described in additional detail in Pierce (2011). Results from the logit specification are also reported in that paper.

  9. This cutoff was also employed in Konings and Vandenbussche (2008) and Pierce (2011).

  10. The level of the Dur variable, as well as its interactions with Treatment and Post, individually, are not in the specification as they cannot be separately identified from the other covariates and fixed effects.

  11. Note that the reported standard errors are adjusted to control for clustering at the product level.

  12. See, e.g., Dixit and Pindyck (1994).

  13. See Becker and Gray (2009).

References

  • Becker, R., & Gray, W. (2009). NBER-CES manufacturing industry database. Available online at http://www.nber.org/data/nbprod2005.html.

  • Berman, E., Bound, J., & Griliches, Z. (1994). Changes in the demand for skilled labor within U.S. manufacturing: Evidence from the annual survey of manufactures. Quarterly Journal of Economics, 109(2), 367–397.

    Article  Google Scholar 

  • Bernard, A., & Jensen, J. B. (1997). Exporters, skill upgrading and the wage gap. Journal of International Economics, 42(1–2), 3–31.

    Article  Google Scholar 

  • Bernard, A., Jensen, J. B., & Schott, P. (2006). Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing. Journal of International Economics, 68(1), 219–237.

    Article  Google Scholar 

  • Blonigen, B., & Park, J. (2004). Dynamic pricing in the presence of antidumping policy: Theory and evidence. American Economic Review, 94(1), 134–154.

    Article  Google Scholar 

  • Bown, C. (2012). Global antidumping database. The World Bank. Available online at http://econ.worldbank.org/ttbd/gad/.

  • Crowley, M. (2006). Do antidumping duties and safeguard tariffs open or close technology gaps? Journal of International Economics, 68(2), 469–484.

    Article  Google Scholar 

  • Dixit, A., & Pindyck, R. (1994). Investment under uncertainty. Princeton: Princeton University Press.

    Google Scholar 

  • Konings, J., & Vandenbussche, H. (2008). Heterogeneous responses to trade protection. Journal of International Economics, 76(2), 371–383.

    Article  Google Scholar 

  • Matsuyama, K. (1990). Perfect equilibria in a trade liberalization game. American Economic Review, 80(3), 480–492.

    Google Scholar 

  • Miyagiwa, K., & Ohno, Y. (1995). Closing the technology gap under protection. American Economic Review, 85(4), 755–770.

    Google Scholar 

  • Pierce, J. (2011). Plant-level responses to antidumping duties: Evidence from U.S. manufacturers. Journal of International Economics, 85(2), 222–233.

    Article  Google Scholar 

  • Pierce, J., & Schott, P. (2012). A concordance between U.S. Harmonized system codes and SIC/NAICS product classes and industries. Journal of Economic and Social Measurement, 37(1–2), 53–68.

    Google Scholar 

  • U.S. International Trade Commission. (2006). Import injury investigations: Case statistics: FY 1980–2005.

Download references

Acknowledgments

I thank Bob Feinberg and Larry White for helpful comments. All remaining errors are my own.

Author information

Authors and Affiliations

  1. Board of Governors of the Federal Reserve System, 20th Street and C Streets NW, Washington, DC, 20551, USA

    Justin R. Pierce

Authors
  1. Justin R. Pierce
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Justin R. Pierce.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Pierce, J.R. Antidumping Duties and Plant-Level Restructuring. Rev Ind Organ 42, 435–447 (2013). https://doi.org/10.1007/s11151-013-9386-8

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11151-013-9386-8

Keywords

JEL Classifications

Search

Navigation