Abstract
Using trade and industry data disaggregated to the four-digit S.I.C. level, the paper analyzes various hypotheses related to directions of U.S. international trade. The study concludes that capital intensity, skill intensity, and, to a lesser degree, economies of scale and industry structure are important determinants of trade patterns. Tariffs appear usually to be established against foreign industries that threaten domestic ones, but there exists limited evidence that tariffs can reverse expected directions of trade.
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*The authors are, respectively, Assistant Professor at Idaho State University and Professor at the University of Texas at Dallas. The research was completed while both authors were affiliated with the University of Iowa. They are grateful to Dr. Robert Cornell, Deputy Director of Economic Research, U.S. International Trade Commission, for providing the agency's databank. They also thank David Curry, University of Iowa, and the Journal's referees for helpful suggestions.
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Kilpatrick, J., Miller, R. Determinants of the Commodity Composition of U.S. Trade: A Discriminant Analysis Approach. J Int Bus Stud 9, 25–32 (1978). https://doi.org/10.1057/palgrave.jibs.8490648
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DOI: https://doi.org/10.1057/palgrave.jibs.8490648