Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/235017 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
AWI Discussion Paper Series No. 694
Publisher: 
University of Heidelberg, Department of Economics, Heidelberg
Abstract: 
The shale revolution is gradually transforming the industrial structure of the United States. This paper quantifies these changes in a model in which industries are linked by productivity linkages. In this framework, productivity gains in one industry may spill over to other industries. For 2015 (the most recent data available), we find that the shale revolution raised US relative wages by around 0.84 percent, whereas Mexican and Canadian wages declined by 1.12 and 1.43 percent, respectively. Judging by countries' ability to sell goods to the US, China is the main beneficiary of the shale revolution with increased US exports of more than $14 billion (7 percent) in 2015. At the same time, the US automobile industry lost sales of more than $65 billion (almost 10 percent) because of the shale revolution.
Subjects: 
Shale revolution
industry linkages
Ricardian trade
oil and gasproduction
structural change
JEL: 
F11
O50
L16
Q33
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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