Open Economies Review
Examining the US manufacturing sector, we focus on the potential employment effects of shifts in import sources from relatively high- to low-income nations. Data for 384 6-digit NAICS US manufacturing industries that span the years 1972–2001 are utilized. Increased import penetration is found to reduce both production and non-production employment; however, such job loss is countered by export-led job creation. Extending the literature, we report that reallocation of import sources from high- to low-income nations reduces manufacturing employment, and when shifts in import sources coincide with rising import penetration the result is an acceleration of job loss.
White, R. (2008). Import Source Reallocation and US Manufacturing Employment, 1972-2001. Open Economies Review, 19 (3) Retrieved from https://poetcommons.whittier.edu/econ/8