Investment responses to trade liberalization: Evidence from US industries and establishments

• 成果类型: Article
• 署名作者: Pierce, Justin R.; Schott, Peter K.
• 署名单位: Federal Reserve System - USA; Yale University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.09.005
• 发表日期: 2018
• 页码: 203-222
• 关键词: investment; Trade policy; Manufacturing; CHINA; Normal trade relations; MFN

摘要

We examine the impact of trade liberalization on domestic investment in the U.S. manufacturing sector. Using a difference-in-differences identification strategy, we find that industries more exposed to an increase in import competition exhibit relative declines in investment. We find that establishment exit plays a key role in the investment adjustment, and that, along the intensive margin, the decline in investment is concentrated among establishments with low initial levels of labor productivity, capital intensity and skill intensity. Analysis of investment patterns before and after the liberalization suggests that, for certain establishments, investment activity is less lumpy following the policy change. (C) 2018 Elsevier B.V. All rights reserved.