Impact of Globalization on Productivity of U.S. Manufacturing Labor: 1988-2003

Abstract

This paper explores the impact of globalization on some determinants of per worker labor productivity in U.S. manufacturing industries. Information and Communication Technologies (ICTs), and trade liberalization are examined as two main drivers of globalization in this study. The estimation result suggests that globalization has negatively impacted per worker productivity across small, medium, and high skill workers in U.S. manufacturing industries.

Keywords: Agglomeration, Globalization, Manufacturing, Productivity

JEL Classification: L60, D24, J24