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Working Paper No. 34 | January 1990

The Determinants of US Foreign Production

Unions, Monopoly Power, and Comparative Advantage

Based on an analysis of industry by region data the author finds little evidence that U.S. unions have been a significant factor in the decision of U.S. firms to produce abroad. Additional evidence suggests that U.S. foreign production may have had a negligible effect on the domestic unionization rate. Corresponding with previous research, the results do indicate that comparative advantage, monopoly power, and foreign tariffs are important determinants of U.S. foreign production.

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