Implications of Current Factor Proportions Indices for the Competitive Position of the U.S. Manufacturing and Service Industries in the Year 2000.

This study utilizes factor proportions indices for assessing the probable competitive pressures developing countries will exert on U.S. manufacturing and service industries over the next decade. The results show that, in many labor-intensive industries like textiles and clothing, the competitive position of the United States has worsened and developing countries' comparative advantage increased. The data also suggest that developing countries generally have a comparative advantage in most service industries (aside from banking and finance), and U.S. net exports may not expand as a result of a global liberalizations. Over 40 percent of current U.S. employment is now in sectors that appear vulnerable to developing country competition. Copyright 1991 by University of Chicago Press.