A MULTIDIMENSIONAL-ANALYSIS OF THE INTERNATIONAL PERFORMANCE OF US MANUFACTURING-INDUSTRIES

This study analyzes the determinants of three alternative measures of the international performance of U.S. manufacturing industries: export shares, the average number of foreign markets served, and the intensity of foreign direct investment. The factors affecting these three variables and various interactions among them are estimated econometrically using a sample of 37 U.S. industries. Overall, variables reflecting industrial organization, technological innovation, and scale economies are found to be more significant than traditional factor-proportions or labor-cost factors in explaining U.S. manufacturing performance in overseas markets.