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U.S. Production Technology And The Effects Of Imports On The Demand For Primary Factors

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Author Info
Christis G. Tombazos

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Abstract

We employ a unit cost function, in the context of the production theory approach, to estimate the Allen-Uzawa effect of various categories of imports on U.S. primary factors. To circumvent curvature-related problems, often associated with similar studies that do not invoke separability, we combine the global imposition of concavity with a symmetric normalized quadratic representation of the unit cost function (which remains flexible after curvature enforcing reparameterizations). Challenging conventional wisdom, we find that the positive, downstream-production-related, employment effects of the majority of imports are significant enough to produce a detectable net increase in labor demand. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 80 (1998)
Issue (Month): 3 (August)
Pages: 480-483
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Handle: RePEc:tpr:restat:v:80:y:1998:i:3:p:480-483

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  1. Alexander Hijzen, 2004. "Trade in Intermediates and the Rise in Wage Inequality in the UK: A GNP Function Approach," Econometric Society 2004 North American Summer Meetings 224, Econometric Society. [Downloadable!]
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