This paper analyses the effects of the European Union's anti-dumping tariffs against Chinese imports on all affected firms: “the good” European import-competing firms, “the bad” Chinese exporters and “the ugly” European importers of dumped products. The results show that temporary import tariffs are beneficial to the least productive “good” EU producers, but harms the most productive “ugly” EU importers. Overall, the net effects of anti-dumping policy on European employment and exports are largely negative. Also tariffs enhance the productivity of surviving “bad” Chinese exporters and widens the productivity gap with European competitors.
Bibliographical noteFunding Information:
We are grateful for comments from Sami Bensassi, Meredith Crowley, Robert Elliott, Maurizio Zanardi and two anonymous referees. We particularly thank the editor Ralph Ossa for guidance. Zhigang Tao is grateful for the support of the Research Grants Council of Hong Kong. Yan Zhang gratefully acknowledges support from the Young Scientists Fund of the National Natural Science Foundation of China (NSFC, Grant No. 71703085 and 71703099), and support by Special Research Fund of China-ASEAN Collaborative Innovation Center for Regional Development and Development Program of Ministry of Education for Changjiang Scholars and Innovative Teams (Grant No. CWZ201514).
- European Union
- Firm heterogeneity
- Trade policy
ASJC Scopus subject areas
- Economics and Econometrics