Services Input Intensity and Us Manufacturing Employment Responses to the China Shock

24 Pages Posted: 25 Jul 2017 Last revised: 16 Jun 2020

See all articles by Omar Bamieh

Omar Bamieh

European University Institute

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Adam Jakubik

European University Institute

Multiple version iconThere are 2 versions of this paper

Date Written: July 2017

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.

Keywords: China shock, import competition, Manufacturing employment, services input use, servicification

JEL Classification: F16, L8

Suggested Citation

Bamieh, Omar and Fiorini, Matteo and Hoekman, Bernard and Jakubik, Adam, Services Input Intensity and Us Manufacturing Employment Responses to the China Shock (July 2017). CEPR Discussion Paper No. DP12173, Available at SSRN: https://ssrn.com/abstract=3008355

Omar Bamieh (Contact Author)

European University Institute ( email )

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Bernard Hoekman

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Adam Jakubik

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

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