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A model which examines the flow of US exports and imports through wholesalers and retailers is presented. It is demonstrated how these firms deviated from their previous portrayals in international trade models.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jmoneco.2006.05.001 Byline: Andrew B. Bernard (a), J. Bradford Jensen (b), Peter K. Schott (c) Abstract: This paper examines the response of U.S. manufacturing industries and plants to changes in trade costs using a unique new dataset on industry-level tariff and transportation rates. Our results lend support to recent heterogeneous-firm models of international trade that predict a reallocation of economic activity towards high-productivity firms as trade costs fall. We find that industries experiencing relatively large declines in trade costs exhibit relatively strong productivity growth. We also find that low-productivity plants in industries with falling trade costs are more likely to die; that relatively high-productivity non-exporters are more likely to start exporting in response to falling trade costs; and that existing exporters increase their shipments abroad as trade costs fall. Finally, we provide evidence of productivity growth within firms in response to decreases in industry-level trade costs. Author Affiliation: (a) Tuck School of Business at Dartmouth and NBER, 100 Tuck Hall, Hanover, NH 03755, USA (b) Institute for International Economics, 1750 Massachusetts Avenue, Washington, DC, 20036-1903, USA (c) Yale School of Management and NBER, 135 Prospect Street, New Haven, CT 06520, USA Article History: Received 30 March 2006; Accepted 12 May 2006 Article Note: (footnote) [star] We thank Marc Melitz, Nina Pavcnik and especially Jim Tybout for helpful comments and insight. We also thank participants at the 2002 Tuck Trade Summer Camp and ERWIT 2002 for their input. Bernard and Schott gratefully acknowledge the National Science Foundation (SES-0241474) for financial support. The research in this paper was conducted while the authors were Special Sworn Status researchers of the U.S. Census Bureau at the Boston Census Research Data Center and the Center for Economic Studies. Research results and conclusions expressed are those of the authors and do not necessarily indicate concurrence by the Bureau of the Census or by the National Bureau of Economic Research. The paper has not undergone the review the Census Bureau gives its official publications. It has been screened to insure that no confidential data are revealed.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jinteco.2005.06.002 Byline: Andrew B. Bernard (a)(b), J. Bradford Jensen (c), Peter K. Schott (b)(d) Keywords: Low-wage country import competition; Manufacturing plant; Comparative advantage Abstract: This paper examines the role of international trade in the reallocation of U.S. manufacturing within and across industries from 1977 to 1997. Motivated by the factor proportions framework, we introduce a new measure of industry exposure to international trade that focuses on where imports originate rather than on their overall level. We find that plant survival and growth are negatively associated with industry exposure to low-wage country imports. Within industries, we show that manufacturing activity is disproportionately reallocated towards capital-intensive plants. Finally, we provide the first evidence that firms adjust their product mix in response to trade pressures. Plants are more likely to switch industries when exposure to low-wage countries is high. Author Affiliation: (a) Tuck School of Business at Dartmouth, 100 Tuck Hall, Hanover, NH 03755, USA (b) NBER, USA (c) Institute for International Economics, 1750 Massachusetts Avenue, Washington, DC 20036-1903, USA (d) Yale School of Management, 135 Prospect Street, New Haven, CT 06520, USA Article History: Received 5 February 2004; Revised 21 February 2005; Accepted 3 June 2005

The imposition of federal restrictions regarding the degree of radioactive exposure among workers has created substantial changes in the firm-specific assets and contracting procedures of electric utilities. During the 1978-1986 period, nuclear power plants witnessed a significant increase in the use of contractors. The period mentioned was further characterized by an increased hiring rate for contract employees, particularly for jobs requiring high radioactive exposure and firm-specific assets are vital.

This paper examines plant level evidence on the increase in demand for non-production workers in U.S. manufacturing during the 1980s. The major finding is that increases in employment at exporting plants contribute heavily to the observed increase in relative demand for skilled labor in manufacturing during the period. Exporters account for almost all of the increase in the wage gap between high- and low-skilled workers. Tests of the competing theories with plant level data show that demand changes associated with increased exports are strongly associated with the wage gap increases. Increases in plant technology are determinants of within plant skill-upgrading but not of the aggregate wage gap rise. Key words: Wage inequality; Skill-biased technological change; International trade

A study describing the evolution of the manufacturing industry in Appalachia is presented, with particular focus on the period 1963 to 1992. In comparison with other regions of the United States, Appalachian industry is seen to rely more on branch plants and for lower productivity and wages to be more prevalent.