EMPLOYMENT IN MANUFACTURING AT THE STATE LEVEL AS IT RELATES TO IMPORTS FROM CHINA AND MEXICO

摘要

The interest in this study is to determine if imports from China or Mexico have any relationship with employment in manufacturing in seven important manufacturing states (Michigan, Wisconsin, Illinois, Pennsylvania, Ohio, Texas, and California). Results of the analysis revealed that in all states there was a significant positive relationship between import from Mexico and employment in manufacturing in a state. The relationship between import from China and employment was positive for six of the states and negative for one state. However, the positive relationship was significant at the 10% level only for Texas and none was significant for the other states. The positive relationship between import from Mexico and employment can be attributed to import of cheap intermediary products to be assembled in the US and sold on the markets as well as import from the US by US companies in Mexico of products on a tariff or duty free basis (because of NAFTA) where these imports are assembled in Mexico and sold back to the US. These trade activities convey a competitive advantage to US companies on the world markets and can help boost employment in the US.