The U.S. Manufacturing Recovery: Uptick or Renaissance?

Oya Celasun, C. Di Bella (), Tim Mahedy and Chris Papageorgiou ()

No 2014/028, IMF Working Papers from International Monetary Fund

Abstract: The notable rebound of U.S. manufacturing activity following the Great Recession has raised the question of whether the sector might be experiencing a renaissance. Using panel regressions, we find that a depreciating real exchange rate, an increasing spread in natural gas prices between the United States and other G-7 countries, and in particular decreasing unit labor costs have had a positive impact on U.S. manufacturing production. While we find it unlikely for manufacturing to become a main engine of growth in the United States, we find that U.S. manufacturing exports could provide nonnegligible growth opportunities going forward.

Keywords: WP; cost; production; price; durable goods; U.S. manufacturing sector; durable and nondurable subsectors; Global Financial Crisis; shale gas; unit labor cost; exchange rate; growth; U.S relative; nondurable goods; durable goods production; per capita income; share of U.S.; Manufacturing; Real effective exchange rates; Global financial crisis of 2008-2009; Labor costs; Fuel prices; Global; Asia and Pacific (search for similar items in EconPapers)
Pages: 24
Date: 2014-02-12
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Citations: View citations in EconPapers (2)

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