Are innovative exporters vulnerable to anti-dumping investigations?

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Authors: Yue Li and Wanli Li
Date: Apr. 2022
From: Technovation(Vol. 112)
Publisher: Elsevier Science Publishers
Document Type: Report; Brief article
Length: 221 words

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Abstract :

Keywords Innovation; Anti-dumping; Exporter; Perceived threat Highlights * The competitive threat of innovative exporters pressurizes foreign competitors to employ AD laws for shelter strategically. * Innovation mainly affects AD investigations via the "perceived threat" channel instead of the "dumping" channel. * Innovation primarily generates effect through its direct signaling effect on future threat (posed to foreign competitors). * We provide firm level empirical evidences on AD determinants, innovation's negative consequence, and the abuse of AD laws. Abstract Based on the anti-dumping (AD) cases initiated by 20 countries (regions) against China, this study explores the effect of exporters' innovation on AD investigations. We find that innovative exporters are vulnerable to AD investigations. Further tests reveal that innovation mainly affects AD investigations via an increase in the perceived threat of foreign competitors, instead of an increase in the possibility of dumping. Innovation's effect is more pronounced for observations with lower export volume and share, revealing the signaling effect of innovation. This study illustrates the mechanism between innovation and AD, enriches literature on AD determinants and innovation's negative consequence, and highlights the abuse of AD laws. Author Affiliation: School of Management, Xi'an Jiaotong University, 28 Xianning West Road, Shaanxi, 710049, China * Corresponding author. Article History: Received 3 February 2021; Revised 14 September 2021; Accepted 15 October 2021 Byline: Yue Li, Wanli Li [liwanli@xjtu.edu.cn]

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Gale Document Number: GALE|A696893049