Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants
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Industries more exposed to trade with China have seen higher exit of plants.
“Industries more exposed to trade with China have seen higher exit of plants (Bernard, Jensen, and Schott 2006), larger contractions in employment (Pierce and Schott 2016; Acemoglu et al. 2016), and lower incomes for affected workers (Autor et al. 2014; Galle, Rodríguez-Clare, and Yi 2017; Caliendo, Dvorkin, and Parro 2019; Autor, Dorn, and Hanson 2019).”
From Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure (2020) · cites this paper as Bernard, Jensen, and Schott 2006
Section 5.1 (p. 15) finds that plant death is more likely in industries with greater exposure to imports from low-wage countries. Section 3 (p. 9) includes China among those countries, but the reported result is for the group, not for exposure to trade with China specifically. (LLM, conf=0.88)
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- Notes: Correlations are computed across industries and Census years (1977, 1982, 1987 and 1992) and control for time effects. All correlations except for real import price changes are significant at the 10% level. Correlations are for four-digit SIC industries (1533 observations) except for the import price correlation, which is based upon three-digit industries (92 observations). Import penetration is total import value divided by domestic absorption. OECD and Tiger value shares are the share of industry imports originating in OECD countries (except Mexico, Korea and newer entrants) and Asian tigers (Korea, Taiwan, Singapore and Hong Kong), respectively. Middle value shares are based upon the set of countries with the noted per capita GDP relative to the U.S. Three-digit SIC (1972 revision) import price indexes are from Feenstra (1996) and are deflated by the U.S. PPI. Import price changes are computed as the average annual change in the real index across Census years. The import price correlation is based upon an aggregation of VSH to threedigit industries.
Cited by
Sorted by citations
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Autor, D. H., Dorn, D., & Hanson, G. H. (2016) · Annual Review of Economics · doi:10.1146/annurev-economics-080315-015041 · Cited by 1,305 · see citing works
Import Competition and the Great US Employment Sag of the 2000s
Acemoglu, D., Autor, D., Dorn, D., Hanson, G. H., & Price, B. (2016) · Journal of Labor Economics · doi:10.1086/682384 · Cited by 1,113 · see citing works
Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure
Autor, D., Dorn, D., Hanson, G., & Majlesi, K. (2020) · American Economic Review · doi:10.1257/aer.20170011 · Cited by 1,063 · see citing works
“Changing Business Dynamism and Productivity: Shocks vs. Responsiveness”
Decker, R., Haltiwanger, J., Jarmin, R., & Miranda, J. (2018) · doi:10.3386/w24236 · Cited by 83 · see citing works
- Authors
- Bernard, A. B., Jensen, J. B., & Schott, P. K.
- Affiliations
- Dartmouth College (US)
- Peterson Institute for International Economics (US)
- National Bureau of Economic Research (US)
- Corresponding author
- Bernard, Andrew B.
- Venue
- Journal of International Economics
- Publisher
- Elsevier BV
- Published
- 2006-01
- Volume
- 68
- Issue
- 1
- Pages
- 219-237
- ISSN
- 0022-1996 (ISSN-L)
- OpenAlex
- W2139804915
- Cited by
- 777
- References
- 0
- Citations by year
- 2026: 17 · 2025: 24 · 2024: 41 · 2023: 39 · 2022: 33 · 2021: 54 · 2020: 57 · 2019: 41 · 2018: 40 · 2017: 33 · 2016: 36 · 2015: 38 · 2014: 41 · 2013: 71 · 2012: 40
- FWCI
- 43.93
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of International Economics (publishedVersion)
- London School of Economics and Political Science Research Online (London School of Economics and Political Science) (acceptedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- OpenGrey (Institut de l'Information Scientifique et Technique) (submittedVersion)
- Funders
- National Science Foundation
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global Trade and Competitiveness
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Keywords
- international trade, plant growth, factor proportions, plant relocation, United States manufacturing
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