Foreign Industrial Exports and State Manufacturing Performance

Leichenko, Robin; Coulson, N. Edward

doi:10.1111/j.1468-2257.1999.tb00042.x

Cited by 16 publications

(23 citation statements)

References 61 publications

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“…The aggregate results, which are consistent with the results of the production-function analysis of exports and state growth performed by Leichenko and Coulson (1999), offer general support for the hypotheses of new international trade theory and cumulative causation theory. The aggregate results, which are consistent with the results of the production-function analysis of exports and state growth performed by Leichenko and Coulson (1999), offer general support for the hypotheses of new international trade theory and cumulative causation theory.…”

supporting

confidence: 82%

“…Export base and endogenous growth theories suggest that trade is an engine of growth. Leichenko and Coulson (1999) examine the causal linkages between foreign exports and state industrial growth across two-digit manufacturing sectors. Alternatively, cumulative causation and NITT indicate that there is a bidirectional relationship between growth and trade.…”

Section: Empirical Analysismentioning

confidence: 99%

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Exports, Employment, and Production: A Causal Assessment of U.S. States and Regions

Leichenko¹

2000

Economic Geography

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. Clark University is collaborating with JSTOR to digitize, preserve and extend access to Economic Geography.Abstract: Rising foreign exports are generally perceived to be a driving force behind U.S. regional economic growth. Yet relatively little empirical attention has been paid to the question of causality between foreign exports and economic growth at the regional level. The belief that exports are an engine of economic growth stems from traditional export base theory. This theory indicates that multiplier effects and externalities associated with export expansion are key sources for regional economic growth. While the notion of an export base is often accepted tacitly by regional development researchers, economic theory actually suggests a number of different interpretations of the causal relationship between exports and growth. Heckscher-Ohlin factor endowment theory postulates, for example, that growth of exports is driven by regional labor and capital supplies. Alternatively, new international trade theory suggests that there is a bidirectional relationship between exports and regional economic growth. Exports are thought to enhance regional growth through promotion of economies of scale in production, but local economic conditions, including strong product demand and agglomeration (external) economies, are also thought to promote the growth of exports. In this study, I investigate the causal relationship between international manufacturing exports and manufacturing employment, productivity, and output across the states and in major multistate regions. Results offer general support for bidirectional causality between exports and state economic growth but also indicate some important variations among the different regions of the country.

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supporting

confidence: 82%

Section: Empirical Analysismentioning

confidence: 99%

Exports, Employment, and Production: A Causal Assessment of U.S. States and Regions

Leichenko¹

2000

Economic Geography

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“…In a sense, international trade is simply a special case of interregional trade that exists because of the special transfer costs (tariffs, etc.) More specific analyses include the impact of international trade on regional economies in Britain (Hoare 1988), the U.S.-Mexico borderlands (Hanson 1996), and states in the United States (Erickson 1989;Leichenko and Coulson 1999;Leichenko 2000;Coughlin and Wall 2003). Such international transfer costs may cause the location of production in a country (region) to differ from an otherwise optimum pattern.…”

Section: Related Researchmentioning

confidence: 99%

Geographic Change with Trade Based on Comparative Advantage

Hanink

Cromley

2005

Annals of the Association of American Geographers

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This article describes a multimarket von Thünen model that concerns change in the internal economic geography of two countries once trade develops between them. Using the principle of comparative advantage, an initial allocation of four industries is established across each of the countries based on local variation in factor endowments, regional demand at several centers, and internal transport costs. Once trade begins, reallocation of production in the four industries in each country is modeled as the response to comparative factor endowments across the countries, trade costs, transport costs, and differences in demand. The model's results indicate that geography matters in trade both within and across countries. Proximity is especially important. Regions of the trading countries that are effectively neighbors are affected more by the introduction of trade than are regions that are peripheral in the true geographical sense. At the national scale, results suggest that a high tariff in one country can raise aggregate production and distribution costs in another country. Key Words: von Thünen model, comparative advantage, international trade.It is convenient, therefore, to think of the world as consisting of a number of large regions, each of which consists of smaller regions (sub-regions), the latter containing a great number of very small districts.- (Ohlin, 1957, 232)

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“…Yet little investigation has been done into whether the high‐tech sectors react differently to international trade pressures than traditional manufacturing sectors and whether these reactions vary by region. An investigation of this relationship is especially pertinent given that high‐tech industries are heavily represented in U.S. exporting sectors and thus especially likely to be affected by trade pressures (Leichenko and Coulson 1999).…”

Section: Distinctions Between Traditional and High‐tech Manufacturingmentioning

confidence: 99%

“…Leichenko and Silva (2004) note that the regional impacts of international trade on manufacturing employment and earnings are complex and are not always consistent with the predictions of HO theory and conventional wisdom. However, international trade has been linked to deindustrialization in traditional manufacturing sectors, a development that is seen as a key driver of the growing wage gap between high‐skill and low‐skill workers within the U.S. (Cline 1997, 2001; Leichenko and Coulson 1999; Wood 1994). Berman, Bound, and Machin 1998, Lawrence and Slaughter (1993), and others note a shift toward higher skill intensity within U.S. manufacturing.…”

Section: Introductionmentioning

confidence: 99%

International Trade and the Changing Demand for Skilled Workers in High‐Tech Manufacturing

Silva

2008

Growth and Change

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States and localities in the U.S. put considerable effort into attracting and maintaining high-tech manufacturing industries to preserve manufacturing employment. However, little work has examined whether high-tech industries respond differently than traditional manufacturing to changing trade pressures. This study investigates the impact of international trade on skilled and unskilled labor demand across manufacturing sectors. Results of this study indicate that changes in exchange rates and trade orientation have similar effects across high-tech and traditional manufacturing sectors. In addition, findings suggest that there is a high degree of variation in the trade-related effects on labor demand across individual high-tech sectors, and that the direction of these effects often runs counter to the predictions of traditional trade theory. Copyright (c) 2008 Blackwell Publishing.

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Foreign Industrial Exports and State Manufacturing Performance

Cited by 16 publications

References 61 publications

Exports, Employment, and Production: A Causal Assessment of U.S. States and Regions

Exports, Employment, and Production: A Causal Assessment of U.S. States and Regions

Geographic Change with Trade Based on Comparative Advantage

International Trade and the Changing Demand for Skilled Workers in High‐Tech Manufacturing

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