How Did the United States Become a Net Exporter of Manufactured Goods?
40 Pages Posted: 25 May 2006 Last revised: 16 Nov 2022
Date Written: April 2000
Abstract
The United States became a net exporter of manufactured goods around 1910 after a dramatic surge in iron and steel exports began in the mid-1890s. This paper argues that natural resource abundance fueled the expansion of iron and steel exports in part by enabling a sharp reduction in the price of U.S. exports relative to other competitors. The commercial exploitation of the Mesabi iron ore range, for example, reduced domestic ore prices by 60 percent in the mid-1890s and was equivalent to nearly 30 years of industry productivity growth in its effect on iron and steel export prices. The results are consistent with Wright's (1990) finding that U.S. manufactured exports were natural resource intensive at this time and have implications for recent work suggesting that resource abundance may be a curse rather than a blessing for economic development.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Natural Resource Abundance and Economic Growth
By Jeffrey D. Sachs and Andrew M. Warner
-
International Comparisons of Educational Attainment
By Robert J. Barro and Jong-wha Lee
-
Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (Bace) Approach
By Gernot Doppelhofer, Ronald I. Miller, ...
-
How Robust is the Relationship between Economic Freedom and Economic Growth
By Jan-egbert Sturm and Jakob De Haan
-
External Debt and Macroeconomic Performance in South Korea
By Susan M. Collins and Won-am Park