On the comparative advantage of U.S. manufacturing: Evidence from the shale gas revolution
Journal
Journal of International Economics
ISSN
0022-1996
Type
journal article
Date Issued
2017
Author(s)
Abstract
This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on U.S. manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the U.S. and the rest of the world reflecting differences in endowment of difficult-to-trade natural gas. Guided by economic theory, empirical tests on output, factor reallocation and international trade are conducted. Results show that U.S.manufacturing exports have grown by about 10% on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Elsevier Science Publishers
Volume
107
Start page
34
End page
59
Pages
26
Subject(s)
Division(s)
Eprints ID
255287
File(s)![Thumbnail Image]()
Name
1-s2.0-S0022199617300284-main.pdf
Size
1.2 MB
Format
Adobe PDF
Checksum (MD5)
2414fb8d5ab79c2e1c003182fdb075ed