The U.S. Manufacturing Recovery: Uptick or Renaissance?
Electronic Access:
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Summary:
The notable rebound of U.S. manufacturing activity following the Great Recession has raised the question of whether the sector might be experiencing a renaissance. Using panel regressions, we find that a depreciating real exchange rate, an increasing spread in natural gas prices between the United States and other G-7 countries, and in particular decreasing unit labor costs have had a positive impact on U.S. manufacturing production. While we find it unlikely for manufacturing to become a main engine of growth in the United States, we find that U.S. manufacturing exports could provide nonnegligible growth opportunities going forward.
Series:
Working Paper No. 2014/028
Subject:
Economic sectors Financial crises Foreign exchange Fuel prices Global financial crisis of 2008-2009 Labor Labor costs Manufacturing Personal income Prices Real effective exchange rates
English
Publication Date:
February 12, 2014
ISBN/ISSN:
9781484301821/1018-5941
Stock No:
WPIEA2014028
Pages:
24
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