London, UK London, UK

In this paper we show that Antidumping (AD) Protection can increase productivity growth of domestic firms in import-competing industries. We identify a panel of domestic firms between 1993 and 2003 that at some point during this period are affected by AD initiations. Using a difference-in-difference approach, we find that AD measures raise Total Factor Productivity (TFP) for protected firms by 1.4 to 12.8 % depending on the specification used. Moreover, the effect of protection depends on the “distance-to-the-frontier firm ” in th