Is the United States Losing its Productivity Advantage?

7 Pages Posted: 4 Oct 2007

See all articles by Mary Amiti

Mary Amiti

Federal Reserve Bank of New York

Kevin J. Stiroh

Federal Reserve Bank of New York

Date Written: September

Abstract

Strikingly high rates of labor productivity growth in China, India, and other emerging economies have prompted concerns that U.S. workers and firms are losing ground to their competitors in world markets. A closer look at the evidence, however, suggests that rapid foreign productivity growth will bring gains as well as losses to the U.S. economy. Some import-competing firms may be compelled to restructure or leave the market, but consumers will benefit from lower import prices and more import varieties, and U.S. exporters may gain access to cheaper intermediate products from abroad.

Keywords: productivity, convergence, emerging markets

JEL Classification: F0, O4

Suggested Citation

Amiti, Mary and Stiroh, Kevin J., Is the United States Losing its Productivity Advantage? (September). Current Issues in Economics and Finance Vol. 13, No. 8, September 2007, Available at SSRN: https://ssrn.com/abstract=1019322 or http://dx.doi.org/10.2139/ssrn.1019322

Mary Amiti (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Kevin J. Stiroh

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
(212) 720-6633 (Phone)
(212) 720-8363 (Fax)

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