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International Trade, Employment, and Earnings: Evidence from U.S. Rural Counties

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  • Robin Leichenko
  • Julie Silva

Abstract

Rural manufacturers in the United States are considered highly vulnerable to competition from international imports. Yet only limited empirical attention has been paid to the effects of trade on U.S. rural economies. This paper investigates the effects of international trade on U.S. rural manufacturing economies and compares the effects of trade pressures in rural versus urban areas. Our results indicate that lower export prices are associated with increased manufacturing employment and earnings in both rural and urban counties, while lower import prices are associated with reduced rural employment but increased urban employment. Greater export orientation is associated with lower employment and earnings in both rural and urban counties, while import orientation has mixed effects.

Suggested Citation

  • Robin Leichenko & Julie Silva, 2003. "International Trade, Employment, and Earnings: Evidence from U.S. Rural Counties," Working Papers 03-12, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:03-12
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    3. Elia, Stefano & Maggi, Elena & Mariotti, Ilaria, 2011. "Does the transport industry gain from manufacturing internationalization? An empirical investigation on the Italian regions," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 49, pages 53-74.
    4. Sébastien Breau, 2010. "Low-Income-Country Import Competition and the Structure of Earnings Inequality in Canada, 1996–2001," Environment and Planning A, , vol. 42(8), pages 1964-1986, August.
    5. Artz, Georgeanne M. & Orazem, Peter F., 2005. "Reexamining Rural Decline: How Changing Rural Classifications and Short Time Frames Affect Perceived Growth," 2005 Annual meeting, July 24-27, Providence, RI 19408, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    10. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2017. "International trade and local labor markets: Do foreign and domestic shocks affect regions differently?," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 375-409.
    11. Jiaochen Liang & Stephan Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
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    13. Diana Barros & Aurora A. C. Teixeira, 2021. "Unlocking the black box: A comprehensive meta-analysis of the main determinants of within-region income inequality," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(1), pages 55-93, February.
    14. Christine WIECK & Thomas I. WAHL, 2010. "The Modelling of an Open Regional Economy: Effects of Imports and Trade Liberalization," Regional and Urban Modeling 284100047, EcoMod.
    15. Ivan T. Kandilov, 2009. "The Effects Of Trade With Developing Countries On The Regional Demand For Skill In The U.S.: Evidence From County Data," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 459-482, August.
    16. Partridge, Mark D. & Rickman, Dan & Olfert, M. Rose & Tan, Ying, 2013. "International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?," MPRA Paper 53407, University Library of Munich, Germany.
    17. Edmira Cakrani, 2015. "The Impact of Real Exchange Rate on Employment in Albania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(5), pages 45-55, October.
    18. Rigby, D L & Breau, Sebastien, 2007. "Impacts of Trade on Wage Quality in Los Angeles: Analysis Using Matched Employer-Employee Data," Center for Global, International and Regional Studies, Working Paper Series qt0fh5z1hf, Center for Global, International and Regional Studies, UC Santa Cruz.
    19. Feng Liu & Kwangtae Park & Unjung Whang, 2019. "Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs," Sustainability, MDPI, vol. 11(14), pages 1-16, July.
    20. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    21. Bureau, Jean-Christophe, 2006. "Freer International Trade and the Consequences for EU rural areas," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12), pages 1-24.
    22. James C. Davis & Brian P. Holly, 2006. "Regional Analysis Using Census Bureau Microdata at the Center for Economic Studies," International Regional Science Review, , vol. 29(3), pages 278-296, July.
    23. Jiaochen Liang & Stephan J. Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
    24. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

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