Strict trade measures, flexible financing

This study investigates the effect of antidumping policy on the payment methods in trade transactions. Using three‐dimensional (country–HS6 product‐year) data on payment methods in imports and detailed data on antidumping activity from Turkey, we show that antidumping duties lead to more exporter‐financed transactions for the targeted country‐product pairs compared to a control group of nontargeted ones. Our findings suggest that exporters offer better financing options when they face competitive pressure in their export destinations because of discriminatory trade policy.