Tuesday, May 22, 2012

Accounting For Decline In US Share Of Global Export Market

This study by the NY Fed was conducted to determine the factors that contributed to the decline in the US share of global exports between the 1980's and 2010.  The US share of exports fell from 12% to 8.5% in that period.  Over half of the decline was explained by being in export markets that were suffering from a falling share of the global export market, and by a decline in the US share of those sectors.  A decline in US productivity, or competitiveness, did not account for a large share of declining US exports.

One of the largest export markets is transportation products.  The loss of share in that market made a contribution to lost export share, but it is not explained by declining productivity.

This report did not mention anything about the role of offshoring in the declining share of US exports.  US computer manufacturers, for example, were major exporters of information technology products.  Today they export most of their products from offshore locations.


No comments:

Post a Comment