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Christis G. Tombazos
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Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (1998) 80 (3): 480–483.
Published: 01 August 1998
Abstract
View articletitled, U.S. Production Technology and the Effects of Imports on the Demand for Primary Factors
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for article titled, U.S. Production Technology and the Effects of Imports on the Demand for Primary Factors
We employ a unit cost function, in the context of the production theory approach, to estimate the Allen-Uzawa effect of various categories of imports on U.S. primary factors. To circumvent curvature-related problems, often associated with similar studies that do not invoke separability, we combine the global imposition of concavity with a symmetric normalized quadratic representation of the unit cost function (which remains flexible after curvature enforcing reparameterizations). Challenging conventional wisdom, we find that the positive, downstream- production-related, employment effects of the majority of imports are significant enough to produce a detectable net increase in labor demand.