Antidumping Shocks and the Productivity Response of Chinese Industries

Abstract

This paper gives a comprehensive analysis of the productivity effects of China received antidumping (AD) measures on Chinese industries from both theoretical and empirical aspects. Theoretical analysis reveals that import country's AD tax improves export firms' technological efficiency but hurts scale efficiency. Technological progress and TFP also will be improved in regular conditions. Empirical results show that China's industrial TFP improved under the pressure of AD from developed countries, increased on average 6.1% after one year; the mechanism is via inspiring both technological efficiency (improved 5.1%) and technological progress (improved 6.4%). Additionally, pure technological efficiency has been significantly improved in AD year but decreased one year later, profit per capital has been hurt in AD measure year but benefited one year later, and total profit has been significantly hurt. Developing countries' AD measures nearly have no significant productivity effects on Chinese targeted industries, only have some positive effects on technological efficiency and negative impacts on pure technological efficiency. We have included some cases to demonstrate the impact mechanism of the empirical results.