Title of article
The effectoflow-wageimportcompetitiononU.S. inflationary pressure
Author/Authors
Raphael Auer، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
13
From page
491
To page
503
Abstract
The effectofimportcompetitionfromlow-wagecountriesonU.S.inflationarypressure
is estimatedusinganewmethodologythatidentifiesthecausalresponseofpricesto
comparativeadvantage-inducedsupplyshocksinthesenations.Theresultsofapanel
covering325manufacturingindustriesfrom1997to2006showthatimportsfromnine
low-wagecountriesareassociatedwithstrongdownwardpressureonprices.When
these nationscapturea1%shareoftheU.S.sector,thesector’sproducerpricesdecrease
by 2.35%.Becauseimportcompetitionalsoinfluencestheskewnessofthedistribution
of pricechanges,itislikelytohaveimpactedU.S.equilibriuminflation
Keywords
Low-wage countryimportcompetitionComparative advantageGlobalization
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846407
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