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On the comparative advantage of U.S. manufacturing : evidence from the shale gas revolution

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Arezki , Rabah and Fetzer, Thiemo (2016) On the comparative advantage of U.S. manufacturing : evidence from the shale gas revolution. Working Paper. Coventry: Department of Economics, University of Warwick. Warwick Economics Research Paper Series (WERPS) (1106). (Unpublished)

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Abstract

This paper provides the first empirical evidence of the newly found comparative advantage of the United States manufacturing sector following the so-called shale gas revolution. The revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world owing
to the physics of natural gas. Results show that U.S. manufacturing exports have grown by about 6 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Manufacturing industries -- United States, Shale gas industry, United States -- Foreign economic relations, Natural gas -- United States, Gas industry, Shale gas , Energy industries -- United States
Series Name: Warwick Economics Research Paper Series (WERPS)
Publisher: Department of Economics, University of Warwick
Place of Publication: Coventry
ISSN: 2059-4283
Official Date: January 2016
Dates:
DateEvent
January 2016Published
Number: 1106
Number of Pages: 38
Institution: University of Warwick
Status: Not Peer Reviewed
Publication Status: Unpublished
Access rights to Published version: Open Access
Description:

This paper also appears as CAGE Working Paper No: 259

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