Title of article :
The effectoflow-wageimportcompetitiononU.S.
inflationary pressure
Author/Authors :
Raphael Auer، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2010
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
Journal title :
Journal of Monetary Economics
