ECIN Replication Package for "Navigating Trade Policy Shocks: How Firms Reallocate Exports in Third Markets"

Globalisation has led to rising trade conflicts and increased use of protectionist policies. This paper provides comprehensive evidence on firms' export reallocation across markets following negative trade shocks, measured by antidumping (AD) duties. Using Chinese customs data and a difference-in-differences approach, we find that firms were less likely to enter new markets and more likely to exit existing ones. However, continuing exporters increased shipments to non-AD markets. Firms retained high-quality products in the market and further upgraded their quality to stay competitive, suggesting potential trade-promoting effects for high-quality products. We also highlight important heterogeneity across market types.