Multinationals, Offshoring, and the Decline of U.S. Manufacturing

A-Tier
Journal: Journal of International Economics
Year: 2020
Volume: 127
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide new facts about the role of multinationals in the decline in U.S. manufacturing employment between 1993 and 2011, using a novel microdata panel with firm-level ownership and trade information. Multinational-owned establishments displayed lower employment growth than a narrow control group and accounted for 41% of the aggregate decline. Newly multinational establishments experienced job losses, while their parent firms increased foreign input imports. We develop a model that rationalizes this behavior and bound a key elasticity with our microdata. The estimates imply that multinational offshoring was responsible for a sizable reduction in U.S. manufacturing employment.

Technical Details

RePEc Handle
repec:eee:inecon:v:127:y:2020:i:c:s0022199620301069
Journal Field
International
Author Count
3
Added to Database
2026-01-24