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How well is the United States competing? A comment on Papadakis

Author

Listed:
  • Louis D. Johnston

    (Gustavus Adolphus College, St. Peter, Minnesota)

  • Menzie D. Chinn

    (University of California, Santa Cruz, California)

Abstract

We contend that Papadakis's inferences regarding past and future competitiveness crises cannot be made on the basis of the evidence she has presented. We support this assertion in three ways. First, we argue that the import penetration ratio is not a reasonable measure of national competitiveness in international markets. Second, we show that conventional macroeconomic models can explain the deterioration in the trade balance during the 1980s. Third, we present data demonstrating that, as of 1990, the United States had very low unit labor costs relative to other developed countries, and had the highest level of aggregate productivity in the world.

Suggested Citation

  • Louis D. Johnston & Menzie D. Chinn, 1996. "How well is the United States competing? A comment on Papadakis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(1), pages 68-81.
    • Handle: RePEc:wly:jpamgt:v:15:y:1996:i:1:p:68-81
    DOI: 10.1002/(SICI)1520-6688(199624)15:1<68::AID-PAM4>3.0.CO;2-H
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    References listed on IDEAS

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    11. Robert Z. Lawrence, 1990. "U.S. Current Account Adjustment: An Appraisal," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(2), pages 343-392.
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    Cited by:

    1. Żmuda Małgorzata, 2017. "Towards a Taxonomy of International Competitiveness," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(3), pages 97-116, September.
    2. Maria Papadakis, 1996. "Confounding productivity and competitiveness: A rejoinder to the comment, “how well is the United States competing?”," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(1), pages 82-88.
    3. Edmund R Thompson, 2003. "A Grounded Approach to Identifying National Competitive Advantage: A Preliminary Exploration," Environment and Planning A, , vol. 35(4), pages 631-657, April.

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