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Globalization And Structural Change In The US Manufacturing Sector, 1987-2010

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  • Christopher E.S. WARBURTON

Abstract

This paper investigates the impact of globalization on structural changes in the US manufacturing sector. It finds that US productivity in the manufacturing sector has increased, but that the performance of the sector is highly contingent on changes in US national income. Changes in manufacturing output responds adversely to shocks that are associated with US national income and manufacturing import, but the negative effect of the income shock on US manufacturing dominates and outlasts that of the manufacturing import shock. Empirical evidence also indicates a dual-causal relationship between national income changes and employment changes in the US manufacturing sector.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 12 (2012)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:eaa:aeinde:v:12:y:2012:i:1_6

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Related research

Keywords: Globalization; Income Shock; Manufacturing; VAR;

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References

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  1. Dunne, T. & Roberts, M.J. & Samuelson L., 1988. "Plant Turnover And Gross Employment Flows In The U.S. Manufacturing Sector," Papers 9-87-7, Pennsylvania State - Department of Economics.
  2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  3. WIJEWEERA, Albert & MOUNTER, Stuart, 2008. "A Var Analysis On The Determinants Of Fdi Inflows: The Case Of Sri Lanka," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 189-198.
  4. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
  5. Pesaran, M. H. & Shin, Y., 1997. "Generalised Impulse Response Analysis in Linear Multivariate Models," Cambridge Working Papers in Economics 9710, Faculty of Economics, University of Cambridge.
  6. James H. Stock & Mark W. Watson, 2001. "Vector Autoregressions," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 101-115, Fall.
  7. John J. HEIM, 2009. "U. S. Demand For Different Types Of Imported And Domestic Investment Goods," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2).
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Cited by:
  1. POPKOVA, Elena, 2014. "New Prospects Of Economic Growth In Context Of Underdevelopment Whirlpools Phenomena," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 5-20.

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