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A deterministic analysis of change in international unit labor costs: Import implications for US industry
Author(s) -
van Loggerenberg Bazil J.
Publication year - 1987
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090080411
Subject(s) - liberian dollar , economics , labor cost , currency , disadvantage , unit (ring theory) , productivity , exchange rate , labour economics , compensation (psychology) , international economics , foreign exchange , us dollar , monetary economics , macroeconomics , finance , mechanical engineering , psychology , mathematics education , mathematics , political science , law , psychoanalysis , engineering
United States industry faces an import threat in the domestic market because foreign exporters achieve lower growth in their unit labor dollar cost. A deterministic analysis of the sources of change over the decade 1974–84 shows that although most foreign trade partners experienced a higher rate of growth in hourly labor compensation than the United States, they discounted this cost disadvantage by achieving more than offsetting cost reductions from growth in labor productivity and in the foreign currency to US dollar exchange rate.