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Title: Services Input Intensity and US Manufacturing Employment Responses to the China Shock

Author(s): Omar Bamieh, Matteo Fiorini, Bernard Hoekman and Adam Jakubik

Publication Date: July 2017

Keyword(s): China shock, import competition, Manufacturing employment, services input use and servicification

Programme Area(s): International Trade and Regional Economics

Abstract: We present industry-level evidence that manufacturing sectors that make use of services as inputs more intensively are more robust to shocks from import competition. Specifically, the negative effect of the China shock on US manufacturing employment is lower for industries with high services input intensity (SII). Furthermore, our analysis reveals significant heterogeneity in the impact of different types of services, which points towards a fruitful research agenda on the role of services as a determinant of firm competitiveness.

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Bibliographic Reference

Bamieh, O, Fiorini, M, Hoekman, B and Jakubik, A. 2017. 'Services Input Intensity and US Manufacturing Employment Responses to the China Shock '. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12173