Export Performance Under Domestic Anti-Dumping Protection

Abstract

This paper investigates the relationship between import protection and export performance employing firm-level data from Peru. 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 substantially higher prices by exporting firms. Firms also reduce their shipments, as suggested by frameworks stressing the role of adjustment costs. These effects are mostly concentrated among small firm. In contrast, when AD measures are imposed on competitors from middle- or high-income countries, exporters ship larger quantities and tend to reduce unit values which is consistent with the existence of scale economies.