Over the past twenty years, imports to the U.S. from low-wage countries have increased dramatically. In this paper we examine how low-wage country import competition in the U.S. influences the probability of manufacturing establishment closure. Confidential data from the U.S. Bureau of the Census are used to track all manufacturing establishments between 1992 and 2007. These data are linked to ...

This paper uses both theory and empirical work to examine the effect of environmental regulations on trade flows. We develop a simple economic model to demonstrate how unobserved heterogeneity, endogeneity and aggregation issues bias measurements of the relationship between regulatory costs and trade. We estimate a reduced-form of the model using data on U.S. regulations and net trade flows amo...

The rise in income inequality in developing countries after trade liberalization has been a puzzle for trade theory, which predicts the opposite effect. The authors present a model with imported intermediate goods in which the relative wages of skilled labor can rise due to higher imports of inputs or due to skill-biased technological change. The evidence from Peru in the post-liberalization ph...

The paper analyses the effects of imports and inward foreign direct investment (FDI) on the innovative activity of domestic firms. The effects are assumed to be positive, since imports and FDI increase the competition on domestic markets and domestic firms have to perform more efficiently to maintain their market position. The hypothesis is tested on the basis of a panel data set containing 127...

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between the years of 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to significant productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 14% of productivity growth in U.S. firms bet...

Nearly ten years have elapsed since the introduction of the Canada-US Free Trade Agreement (FTA). At the time the agreement was negotiated concern was expressed that the reduction of tariff barriers would remove the incentive for much US foreign direct investment (FDI) into Canada. This paper provides empirical evidence to show that US foreign direct investment into Canada has continued to grow...

Türkiye Cumhuriyeti kurulduğundan beri imalat sanayinin geliştirilmesi için sürekli olarak aktif ekonomi politikaları uygulanmıştır. GSYİH içerisinde %20’lik payı olan bu sektörün incelenmesi ve politika önerilerinde bulunulması oldukça önemlidir. Bu doğrultuda yapılan çalışmada, ithalat ihracat ile beşerî sermayenin sanayi üzerindeki etkilerinin amaçlanmış, kapsamda Cobb-Douglas üretim fonksiy...

This paper examines the impact of competition from Chinese imports on innovation by U.S. public manufacturing firms. Exploiting cross-industry and over-time trade variations from 1991 to 2004, I find that when Chinese imports surged into the U.S. market, U.S. public manufacturing firms increased their number of patents as a response. In addition, U.S. public manufacturing firms appeared to adop...