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Bernard Schwartz

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Research Working Groups

International Trade and Deindustrialization

Will Milberg, milbergw@newschool.edu
Markus Schneider, m_schneider@speedymail.org
Rudiger von Arnim, vonR605@newschool.edu

The International Trade and Deindustrialization Research Working Group will take up a number of issues related to the U.S. performance in international trade and its implications for U.S. employment and industrial health. The project on deindustrialization will use factor content analysis to measure the role of international trade on the manufacturing share of U.S. employment. The role of trade in deindustrialization of OECD countries has been debated heavily in the past ten years, with one group arguing that deindustrialization is a natural and healthy outcome for countries in the same way that the move from agriculture to industry was a century ago. Another group has identified imports from low-wage countries as a large and significant factor in deindustrialization. This project will look at the latest disaggregated data for the U.S. in an effort to better understand the role of trade in the determination of the composition of U.S. output and employment.

The second project focuses on outsourcing and especially service sector outsourcing in the U.S. The aim is to capture the employment and downstream trade effects of the recent explosion in trade in intermediate goods and services. In the first part of the project we will estimate the effects of outsourcing on U.S. income distribution, in particular on profit and wage rates. In the second part of the project we will estimate demand for intermediate services imports and exports, in an effort to assess how different the recent experience is from the longer-term past experience, and to see if the services imports are linked in any significant way to market access abroad and thus to an expansion of U.S. exports.

The Trade and Deindustrialization Working Group will also be hosting the New York Apparel Industry Study Group, and interdisciplinary study group, drawing on resources at the Graduate Faculty, Parsons School of Design and the Milano School of Urban Management. The textile and apparel industry in New York City has shrunk slowly over the past four decades but remains the largest manufacturing industry in the New York City in terms of employment. Fashion design in New York is on the cutting edge of global trends, and the retail sector in New York City has expanded and changed. Overall, the industry supports both high-skill design and marketing jobs and low-skill sewing and shipping work. With the globalization of production, the decline in transportation costs, the phase-out of the Multi-Fiber Arrangement and increasing control of the apparel retail industry by mega-chains like Wal-Mart, the industry's future in New York City is in doubt. The rise of dynamic, design-intensive retailers such as Zara, on the other hand, point in the direction of increased reliance on local sources for fashion design and production. The purpose of the Apparel Industry Study Group at New School University is to bring together designers, marketing experts, economists and urban planners to study the future of this industry and to recommend policies for keeping the industry in New York strong and dynamic.

The Apparel Industry Study Group will be based at New School University, and begin by hosting a series of speakers on the future of the industry. The Group will then embark on a program of research aimed at better understanding the industry's global dynamics, the linkages among fashion designers, retailers and the pattern of production sourcing, the importance of international commercial and immigration policy and the role of organized labor.

For more information on the Apparel Industry Study Group at New School University, contact Professor William Milberg, Department of Economics, Graduate Faculty, New School University, 65 Fifth Ave., New York, NY 10003, tel: (212) 229-5717, fax: (212) 229-5724, e-mail: milbergw@newschool.edu

Policy Notes:

Milberg, William, Melissa Mahoney, Markus Schneider, and Rudi von Arnim (2006) "Spurring Growth Dynamics from Services Offshoring"

Publications:

Milberg, William [ed.] (2004), Labour and the Globalization of Production: Causes and Consequences of Industrial Upgrading, New York: Palgrave Macmillan.

William Milberg and Ellen Houston (2005), 'The High Road and the Low Road to International Competitiveness: Extending the Neo-Schumpeterian Trade Model Beyond Technology', International Review of Applied Economics, 19, 139-164.

Milberg (2004), 'The changing structure of international trade linked to global production systems: what are the policy implications?' International Labour Review, 143, 45-90.

David Kucera and William Milberg (2003). 'Deindustrialization and Changes in the Manufacturing Trade: Factor Content Calculations for 1978-1995', Review of World Economics, 139.

William Milberg (2002) 'Say's Law in the open economy: Keynes's rejection of the theory of comparative advantage', in Sheila C. Dow and John Hillard, Keynes, Uncertainty and the Global Economy: Beyond Keynes, Volume Two, Northampton: Edward Elgar, pp. 239-253.

Working Papers:

William Milberg, 2002, "Trade and Competition Policy"

Links: Apparel Industry Study Group

  

 

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