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Antidumping Duties and Plant-Level Restructuring
Justin R. Pierce (au)
While a large theoretical literature has considered the effect of temporary trade protection policies on restructuring activities, such as the adoption of new technology, there is little empirical evidence on the subject. This study examines whether the temporary reduction in competition associated with antidumping duties allows plants to restructure their production processes. Using a dataset that contains the full population of U.S. manufacturers, the author finds 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. He finds little effect of antidumping duties on a proxy for the skilled labor intensity of protected plants. Tables. This is a print on demand report.
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