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Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis

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This paper examines whether employment and wages in the US manufacturing sector exhibit any long-run relationship with import competition. The results based on a multivariate panel cointegration analysis of observations on 12 two-digit SIC manufacturing industries over the period from the third quarter of 1982 to the fourth quarter of 1992 indicate that US manufacturing employment does not bear a long-run relationship with import competition but manufacturing wage does. While the long-run correlation between import price and manufacturing wage is found to be sector sensitive panel estimation reveals a highly significant negative correlation between import price and manufacturing wage.

Document Type: Research Article


Affiliations: Department of Economics, University of Wisconsin, Milwaukee, WI 53201, USA

Publication date: September 10, 2003

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