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Trade, Geography, and Industry Growth in U.S. Manufacturing

Listed author(s):
  • John Francis


    (Department of Economics and Finance, College of Business, P.O. Box 10318, Louisiana Tech University, Ruston, LA 71272, USA; corresponding author)

  • Yuqing Zheng


    (Cornell Commodity Promotion Research Program, Department of Applied Economics and Management, 311 Warren Hall, Cornell University, Ithaca, NY 14853, USA)

Much of the recent empirical literature examining the New Economic Geography has focused on how access to markets impacts wages. In this article, we consider an alternative aspect of the theory by examining how access to markets affects industry growth. We develop a model relating the growth of two key measures of market size—market access and supplier access—to growth in industry employment and the real value of industry shipments. We estimate the model using data on U.S. manufacturing industries between 1984 and 1996. We find strong evidence to suggest that access to markets positively affects industry growth.

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Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 78 (2012)
Issue (Month): 4 (April)
Pages: 1222-1241

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Handle: RePEc:sej:ancoec:v:78:4:y:2012:p:1222-1241
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