The ‘China Shock’, Exports and U.S. Employment: A Global Input-Output Analysis

Feenstra, Robert C.; Sasahara, Akira

doi:10.3386/w24022

Cited by 28 publications

(32 citation statements)

References 19 publications

(33 reference statements)

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“…However, once we include SITC and year fixed effects, as in column (4), the US import growth loses its significance. 12 These results show that the correlation of import demand across countries is a macroeconomic phenomena that can be controlled for by using sector and time fixed effects. Therefore, by taking a decadal difference and including a decade period dummy, as we do in our employment regressions, any effects of correlated demand shocks are eliminated.…”

Section: Sit C Gtmentioning

confidence: 85%

“…Specifically, using the Im-Pesaran-Shin test (for large N and fixed T), and including a time trend, the null hypothesis of a unit-root in the panel of US imports by SITC industry cannot be rejected. 12 A comparison of the odd columns with their corresponding even columns shows that the number of observations is reduced. This is because the US import variable is not available for all SITC products that the US is exporting.…”

Section: Sit C Gtmentioning

confidence: 99%

“…Using equations (12) and (13), we can generate instruments for both the upstream and downstream exposure measures. Table 6 presents the 2SLS estimation results, for period 1991-2011.…”

Section: Accounting For Input-output Linkagesmentioning

confidence: 99%

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US exports and employment

Feenstra

2019

Journal of International Economics

119

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We examine the employment responses to import competition from China and to global export expansion from the United States, both of which have been expanding strongly during the past decades. We find that although Chinese imports reduce jobs, at both the industry level and the local commuting zone level, the global export expansion of US products also creates a considerable number of jobs. On balance over the entire 1991-2007 period, job gains due to changes in US global exports were slightly less than job losses due to Chinese imports. Using data at both the industry level and the commuting zone level, we find a net loss of around 0.2-0.3 million jobs. When we extend the analysis to 1991-2011, we find the net job effect of import and export exposure is roughly balanced at the commuting zone level.

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Section: Sit C Gtmentioning

confidence: 85%

Section: Sit C Gtmentioning

confidence: 99%

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US exports and employment

Feenstra

2019

Journal of International Economics

119

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“…In the case of the US, in the aggregate there has been large-scale job creation that more than outweighs the losses in manufacturing employment. Feenstra and Sasahara (2017) calculate that trade with China increased labor demand by a total of 1.7 million jobs, much of it in services. As a services economy, overall employment growth in the US has largely been concentrated in services sectors, a factor that has tended to be ignored or neglected in the analysis of labor economists of the effects of greater trade on manufacturing employment.…”

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confidence: 99%

Reflecting on populism and the economics of globalization

Hoekman

Nelson

2018

J Int Bus Policy

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In this commentary, we take up two key elements of Dani Rodrik's analysis of the economic underpinnings of populist politics. We focus on the links between globalization (especially trade integration) and populism and the role of global institutions (notably trade agreements) in both generating the economic pressures to which populist politicians are responding and in constraining the ability of governments to deal with adverse distributional effects of these pressures. We argue that it is important to distinguish between trade shocks and trade agreements; that the role of both is given too much weight relative to the effects of financialization and international capital flows, migration, and technological change; and that deepening international cooperation (global governance) can -and should -be part of the supply response to populism.

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“…That is the approach taken by Feenstra and Sasahara (2017) who use a global input-output analysis and examine both US imports from China and imports from all countries. They find that the implied employment effect of US manufacturing imports from China is somewhat smaller than found in this paper, while the employment effect of US manufacturing imports from the world is somewhat larger.…”

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confidence: 99%