Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of U.S. Manufacturing Plants

J. Jensen (jbj24@georgetown.edu), Andrew Bernard and Peter Schott

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: This paper examines the role of international trade in the reallocation of U.S. manufacturing within and across industries from 1977 to 1997. Motivated by the factor proportions framework, we introduce a new measure of industry exposure to international trade that focuses on where imports originate rather than on their overall level. We find that plant survival and growth are negatively associated with industry exposure to low-wage country imports. Within industries, we show that manufacturing activity is disproportionately reallocated towards capital-intensive plants. Finally, we provide the first evidence that firms adjust their product mix in response to trade pressures. Plants are more likely to switch industries when exposure to low-wage countries is high.

Keywords: Low-Wage Country Import Competition; Manufacturing Plant; Comparative Advantage (search for similar items in EconPapers)
JEL-codes: F11 F14 L25 L60 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2005-10
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www2.census.gov/ces/wp/2005/CES-WP-05-19.pdf First version, 2005 (application/pdf)

Related works:
Journal Article: Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants (2006)
Working Paper: Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of U.S. Manufacturing Plants (2003)
Working Paper: Survival of the best fit: exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants (2003)
Working Paper: Survival of the best fit: exposure to low-wage countries and the (uneven) growth of US manufacturing plants (2003)
Working Paper: Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of US Manufacturing Plants (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:05-19

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