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U.S. Manufacturing: Productivity, Offshoring, and Imports

Author

Listed:
  • Sebastiano Manzan

    (Baruch College)

  • Howard N. Ross

    (Baruch College)

Abstract

The impact of offshoring on average labor productivity is investigated on a panel of 17 manufacturing sectors between 1989-2006. As proxies for offshoring, we use imports and import penetration, defined as the ratio of imports to output. We disaggregate the universe of exporters into low wage countries, NAFTA and the rest of the world. Controlling for production inputs, significant increases in productivity are explained by the growth of imports weighted by import penetration. The exception are imports from NAFTA which have a negative impact on productivity.

Suggested Citation

  • Sebastiano Manzan & Howard N. Ross, 2011. "U.S. Manufacturing: Productivity, Offshoring, and Imports," Economics Bulletin, AccessEcon, vol. 31(4), pages 2875-2883.
    • Handle: RePEc:ebl:ecbull:eb-11-00519
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    productivity; offshoring; import penetration;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • F1 - International Economics - - Trade

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