On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution
This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the United States...
| Main Authors: | , , |
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| Format: | Working paper |
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University of Oxford
2016
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| _version_ | 1797101127328595968 |
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| author | Arezki, R Fetzer, T Pisch, F |
| author_facet | Arezki, R Fetzer, T Pisch, F |
| author_sort | Arezki, R |
| collection | OXFORD |
| description | This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world reflecting differences in endowment of difficult to trade natural gas. Guided by economic theory, empirical tests on output, factor reallocation and international trade are conducted. Results show that U.S. manufacturing exports have grown by about 10 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins. |
| first_indexed | 2024-03-07T05:47:27Z |
| format | Working paper |
| id | oxford-uuid:e7b0c852-09b1-4100-9b36-c94f73e1040a |
| institution | University of Oxford |
| last_indexed | 2024-03-07T05:47:27Z |
| publishDate | 2016 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:e7b0c852-09b1-4100-9b36-c94f73e1040a2022-03-27T10:40:48ZOn the comparative advantage of U.S. manufacturing: evidence from the shale gas revolutionWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:e7b0c852-09b1-4100-9b36-c94f73e1040aSymplectic ElementsBulk import via SwordUniversity of Oxford2016Arezki, RFetzer, TPisch, FThis paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world reflecting differences in endowment of difficult to trade natural gas. Guided by economic theory, empirical tests on output, factor reallocation and international trade are conducted. Results show that U.S. manufacturing exports have grown by about 10 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins. |
| spellingShingle | Arezki, R Fetzer, T Pisch, F On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title | On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title_full | On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title_fullStr | On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title_full_unstemmed | On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title_short | On the comparative advantage of U.S. manufacturing: evidence from the shale gas revolution |
| title_sort | on the comparative advantage of u s manufacturing evidence from the shale gas revolution |
| work_keys_str_mv | AT arezkir onthecomparativeadvantageofusmanufacturingevidencefromtheshalegasrevolution AT fetzert onthecomparativeadvantageofusmanufacturingevidencefromtheshalegasrevolution AT pischf onthecomparativeadvantageofusmanufacturingevidencefromtheshalegasrevolution |