A Study On The Mechanism Of US Manufacturing Renaissance

After the financial crisis,US manufacturing experienced strong growth for a time,the long time de-industrialization seems to have stopped.The outbreak of the financial crisis made the United States realize the drawbacks of excessive dependence on virtual economic growth and the shortcomings of ignorance of the development of manufacturing.In 2009,the Obama government launched the famous Framework of Manufacturing Rivival policy,which aims at promoting the growth of US manufacturing industry.Besides,President Trump also strongly emphasizes the importance of the return of manufacturing to the United States.These all make the US manufacturing renaissance a hot topic.This article mainly includes five chapters.The first chapter briefly introduces the research background and significance,reviews and summarizes the relevant research.The second chapter analyzes the development process of US manufacturing,which is the basis to discuss the manufacturing revival related issues.The third chapter,from the production cost point of view,tries to discuss the mechanism for US manufacturing to achieve renaissance,which is the focus of this article.The fourth chaper analyzes factors that drive the growth of US manufacturing and uses the industry-specific data of 85 US manufacturing industries between the year 2007 and 2014 for empirical testing.The fifth chapter summarizes the previous discussion and put forward some relevant policy recommendations.The main conclusions of this paper are as follows:First,the traditional industries are the main driving force to stimulate the US manufacturing growth after the crisis,which is in sharp contrast to the common public view that "the high-tech industry drives the US manufacturing growth".Besides,the US manufacturing industry is not an integrated body of high-tech industry,on the contrary,the traditional industries still hold a dominant position.Exports are an important source of growth to stimulate the US manufacturing,and become more and more important for US manufacturing.Second,the return of production back to the United States is the basis for the United States to achieve manufacturing renaissance.The importance of the return of production back to US is that innovation is an important factor that drives the renaissance of US manufacturing,while production process is a breeding ground for innovation.The decline in profitabilirty is the root cause for de-industrialization in the United States,therefore,the increase of profitability in manufacturing is the core to bring production back to US.Third,the reduction in production costs is an important part of increasing the profitability of US manufacturing,which will make production in US more attractive,and help to stimulate manufacturing in the United States.Among the ways of reducing US domestic production costs,the decline in unit labor costs,the depreciation of the dollar,and other factors such as lower energy prices have attracted lots of attention in recent years.Fourthly,in the empirical test,through the use of US manufacturing industry-specific data from the year 2007 to 2014,the article finds that the decline in unit labor cost,dollar depreciation,lower energy costs,more R&D investment and the reducing of tax burden play important roles in promoting the growth of US manufacturing.Fifth,it may not be easy to rely only on the US manufacturing to overcome its long-standing cost disadvantage,especially when US manufacturing has dramatically shrunk over the years.The Government's support in relevant policies will be an important guarantee to further reduce the production costs of US manufacturing,and therefore promotes the growth of US manufacturing.