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On the comparative advantage of U.S. manufacturing:evidence from the shale gas revolution

Arezki, Rabah and Fetzer, Thiemo (2016) On the comparative advantage of U.S. manufacturing:evidence from the shale gas revolution. CEP Discussion Paper (1399). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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This paper provides the first empirical evidence of the newly found comparative advantage of the United States manufacturing sector following the so-called shale gas revolution. The revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world owing to the physics of natural gas. Results show that U.S. manufacturing exports have grown by about 6 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2016 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
T Technology > TK Electrical engineering. Electronics Nuclear engineering
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 09 May 2016 11:56
Last Modified: 18 Jul 2020 23:07
Funders: Economic and Social Research Council, Economic and Social Research Council

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