The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance

Liza Jabbour*, Zhigang Tao, Enrico Vanino, Yan Zhang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)
137 Downloads (Pure)

Abstract

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.

Original languageEnglish
Pages (from-to)1-20
Number of pages20
JournalJournal of International Economics
Volume117
Early online date18 Dec 2018
DOIs
Publication statusPublished - Mar 2019

Bibliographical note

Funding 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).

Publisher Copyright:
© 2018

Keywords

  • Anti-dumping
  • China
  • Difference-in-differences
  • European Union
  • Firm heterogeneity
  • Trade policy

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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