Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71450
Authors: 
Bernard, Andrew Barnes
Jensen, J. Bradford
Schott, Peter K.
Year of Publication: 
2003
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 03/12
Abstract: 
This paper examines the role of international trade in the reallocation of U.S. manufacturing activity within and across industries from 1977 to 1997. It introduces a new measure of industry exposure to international trade, motivated by the Heckscher-Ohlin model, which focuses on where imports originate rather than their overall level. Results demonstrate that plant survival as well as output and employment growth are negatively associated with the share of industry imports sourced from the world's lowest-wage countries. Within industries, activity is reallocated towards capital-intensive plants. Plants are also more likely to alter their product mix (i.e. switch industries) in response to trade with low-wage countries. Plants altering their product mix switch to industries that are more capitaland skill-intensive.
Subjects: 
Low-Wage Country Import Competition
Heckscher-Ohlin
Manufacturing Plant
JEL: 
F11
F14
L25
L60
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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