Trade Protection and Market Power: Evidence from US Antidumping and Countervailing duties

This paper uses a long panel of US 4-digit industries to analyse the impact of US Antidumping (AD) and Countervailing duties (CVD) on domestic producers' price-cost margins (PCM). In the analysis I account for selection bias in the imposition of AD/CVD as well as the intensity of the protection granted. I find evidence of a positive effect of AD/CVD on PCM. However, the point estimates are small suggesting that whilst the effects of these policies on the market of the products directly affected may be important, their sector level effects are modest.