IDEAS home Printed from https://ideas.repec.org/a/pal/buseco/v54y2019i2d10.1057_s11369-019-00130-x.html
   My bibliography  Save this article

What is going right in manufacturing?

Author

Listed:
  • Mark Vitner

    (Wells Fargo Securities, LLC)

  • Azhar Iqbal

    (Wells Fargo Securities, LLC)

Abstract

This study looks into whether the manufacturing sector has experienced a stronger-than-expected recovery and identifies five potential drivers of the manufacturing sector’s strong performance—tax and regulatory reform, the shale energy boom, technological advances that reduced the labor needed to produce products, increased concerns about protecting intellectual property, and supply chain concerns. Our statistical analysis confirms the manufacturing sector experienced a resurgence in the post-Great Recession era. The Dynamic Factor Model (DFM) approach suggests the realized path of manufacturing employment was stronger than the historical trends. Business cycle analysis indicates the largest average growth rates are reported in the post-Great Recession era compared to other subsamples. Structural breaks are found in all variables. In our view, the policies and events of the past several years were able to stimulate consistent and lasting growth in the manufacturing sector.

Suggested Citation

  • Mark Vitner & Azhar Iqbal, 2019. "What is going right in manufacturing?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(2), pages 114-121, April.
    • Handle: RePEc:pal:buseco:v:54:y:2019:i:2:d:10.1057_s11369-019-00130-x
    DOI: 10.1057/s11369-019-00130-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s11369-019-00130-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s11369-019-00130-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert J. Gordon, 2016. "The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War," Economics Books, Princeton University Press, edition 1, number 10544.
    2. Mark Vitner & Azhar Iqbal, 2013. "Is Productivity Growth Too Strong For Our Own Good?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 48(1), pages 29-41, February.
    3. James H. Stock, 2019. "The business cycle is alive and well," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(1), pages 79-84, January.
    4. Martin Neil Baily & Barry P. Bosworth, 2014. "US Manufacturing: Understanding Its Past and Its Potential Future," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 3-26, Winter.
    5. Justin R. Pierce & Peter K. Schott, 2016. "The Surprisingly Swift Decline of US Manufacturing Employment," American Economic Review, American Economic Association, vol. 106(7), pages 1632-1662, July.
    6. Broughton, Chad, 2015. "Boom, Bust, Exodus: The Rust Belt, the Maquilas, and a Tale of Two Cities," OUP Catalogue, Oxford University Press, number 9780199765614.
    7. Azhar Iqbal & John Silvia, 2016. "Is Predicting Recessions Enough?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 51(4), pages 248-259, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gagliardi, Luisa & Moretti, Enrico & Serafinelli, Michel, 2023. "The World's Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," IZA Discussion Papers 16648, Institute of Labor Economics (IZA).
    2. Kevin L. Kliesen & John A. Tatom, 2018. "Is American manufacturing in decline?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(3), pages 107-123, July.
    3. Campbell, Douglas L., 2020. "Relative Prices and Hysteresis: Evidence from US Manufacturing," European Economic Review, Elsevier, vol. 129(C).
    4. Gagliardi, Luisa & Moretti, Enrico & Serafinelli, Michel, 2023. "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," CEPR Discussion Papers 18655, C.E.P.R. Discussion Papers.
    5. Ryan A. Decker & John C. Haltiwanger & Ron S. Jarmin & Javier Miranda, 2018. "Changing Business Dynamism and Productivity: Shocks vs. Responsiveness," NBER Working Papers 24236, National Bureau of Economic Research, Inc.
    6. Veronica Minaya & Brendan Moore & Judith Scott-Clayton, 2020. "The Effect of Job Displacement on College Enrollment: Evidence from Ohio," NBER Working Papers 27694, National Bureau of Economic Research, Inc.
    7. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum, 2017. "Trade and Manufacturing Jobs in Germany," American Economic Review, American Economic Association, vol. 107(5), pages 337-342, May.
    8. Taner Akan & Aycan Hepsağ & Şeref Bozoklu, 2022. "Explaining U.S. economic growth performance by macroeconomic governance, 1952–2018," Journal of Evolutionary Economics, Springer, vol. 32(5), pages 1437-1465, November.
    9. Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1229-1292, November.
    10. Teresa C. Fort & Justin R. Pierce & Peter K. Schott, 2018. "New Perspectives on the Decline of US Manufacturing Employment," Journal of Economic Perspectives, American Economic Association, vol. 32(2), pages 47-72, Spring.
    11. Kamal, Fariha & Lovely, Mary E., 2017. "Import competition from and offshoring to low-income countries: Implications for employment and wages at U.S. domestic manufacturers," Journal of Asian Economics, Elsevier, vol. 48(C), pages 100-119.
    12. Duran-Micco, Elisa & Perloff, Jeffrey M., 2022. "How large are double markups?," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    13. Luisa Gagliardi,, "undated". "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," RF Berlin - CReAM Discussion Paper Series 2317, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    14. Jan De Loecker & Jan Eeckhout & Gabriel Unger, 2020. "The Rise of Market Power and the Macroeconomic Implications [“Econometric Tools for Analyzing Market Outcomes”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 561-644.
    15. Kenneth E. Poole & Brendan Buff, 2018. "Strengthening Manufacturing—How Research Can Inform Public Policy: An Introduction to the Special Issue," Economic Development Quarterly, , vol. 32(4), pages 267-270, November.
    16. Minaya, Veronica & Moore, Brendan & Scott-Clayton, Judith, 2023. "The effect of job displacement on public college enrollment: Evidence from Ohio," Economics of Education Review, Elsevier, vol. 92(C).
    17. William E. Even & David A. Macpherson, 2019. "Where Does the Minimum Wage Bite Hardest in California?," Journal of Labor Research, Springer, vol. 40(1), pages 1-23, March.
    18. Sharma Shalendra D., 2014. "The Global Economic Imbalances: The Dangers of Not Rebalancing," New Global Studies, De Gruyter, vol. 8(2), pages 153-176, July.
    19. Susan N. Houseman & Brad J. Hershbein, 2018. "Understanding the Decline of U.S. Manufacturing Employment," Upjohn Working Papers 18-287, W.E. Upjohn Institute for Employment Research.
    20. Richard Schmalensee, 2018. "Puzzles and Surprises in Employment and Productivity in U.S. Manufacturing After the Great Recession," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 5-27, Fall.

    More about this item

    Keywords

    Manufacturing; Employment growth; Resurgence; Structural break;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:buseco:v:54:y:2019:i:2:d:10.1057_s11369-019-00130-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.