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Is the United States losing its productivity advantage?

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Author Info

  • Mary Amiti
  • Kevin Stiroh

Abstract

Strikingly high rates of labor productivity growth in China, India, and other emerging economies have prompted concerns that U.S. workers and firms are losing ground to their competitors in world markets. A closer look at the evidence, however, suggests that rapid foreign productivity growth will bring gains as well as losses to the U.S. economy. Some import-competing firms may be compelled to restructure or leave the market, but consumers will benefit from lower import prices and more import varieties, and U.S. exporters may gain access to cheaper intermediate products from abroad.

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Bibliographic Info

Article provided by Federal Reserve Bank of New York in its journal Current Issues in Economics and Finance.

Volume (Year): 13 (2007)
Issue (Month): Sep ()
Pages:

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Handle: RePEc:fip:fednci:y:2007:i:sep:n:v.13no.8

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Related research

Keywords: Labor productivity ; Economic conditions ; Imports - Prices ; Competition;

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Cited by:
  1. Corinne Winters, 2008. "The Carry Trade, Portfolio Diversification, and the Adjustment of the Japanese Yen," Discussion Papers 08-2, Bank of Canada.

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