EconPapers    
Economics at your fingertips  
 

On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution

Rabah Arezki, Thiemo Fetzer and Frank Pisch

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world reflecting differences in endowment of difficult-to-trade natural gas. Guided by economic theory, empirical tests on output, factor reallocation and international trade are conducted. Results show that U.S. manufacturing exports have grown by about 10 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins.

Keywords: manufacturing; exports; energy prices; shale gas (search for similar items in EconPapers)
JEL-codes: L71 N52 O13 Q33 R11 (search for similar items in EconPapers)
Date: 2016-11-01
New Economics Papers: this item is included in nep-ene and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cep.lse.ac.uk/pubs/download/dp1454.pdf (application/pdf)

Related works:
Journal Article: On the comparative advantage of U.S. manufacturing: Evidence from the shale gas revolution (2017) Downloads
Working Paper: On the comparative advantage of U.S. manufacturing: Evidence from the shale gas revolution (2017) Downloads
Working Paper: On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution (2017) Downloads
Working Paper: On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution (2016) Downloads
Working Paper: On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution (2016) Downloads
Working Paper: On the comparative advantage of U.S. manufacturing:evidence from the shale gas revolution (2016) Downloads
Working Paper: On the comparative advantage of U.S. manufacturing:evidence from the shale gas revolution (2016) Downloads
Working Paper: On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution (2016) Downloads
Working Paper: On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1454

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().

 
Page updated 2025-03-24
Handle: RePEc:cep:cepdps:dp1454