The following work presents the main results of the article "US Exports and Employment" by Robert C. Feenstra, Hong Ma and Yuan Xu from September 2017. Moreover, this work will focus on the underlying econometric methodology and will discuss possible weaknesses. Further, the author examines the scientific potential of the article and its contribution to science.
The authors of the article used instrument variables regressions to examine the unbiased effects of the change in the US industry level import penetration from China and the change of US global industrial export exposure on US employment.
Increasing imports from China have been the subject of massive critics from the White House and in particular from President Donald Trump. One often repeated argument in favour of hampering imports from China has been the job losses in the manufacturing sector due to import competition. Although, various papers focus on job reducing effects of surging imports from China and the theory that export exposure creates jobs is well accepted, the effects on the US labour market due to changes in global export exposure had not been examined yet.
Table of Contents
Introduction
Industry level – Empirical Strategy
Instrument for change in industry level import penetration from China
Instruments for change of global industrial export exposure
Industry level - Investigating the effect of export growth and import exposure on employment
Specifications
Commuting zone level – Empirical Strategy
Instruments for change in industry level import penetration from China and change of global industrial export exposure
Commuting zone level - Investigating the effect of export growth and import exposure on employment
Critic
Validity of the used instrumental variables
Contribution
Conclusion
References
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