UNITED-STATES FOREIGN PRODUCTION AND UNIONS

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. In effect, the composition of U.S. foreign production does not appear to be drawn from U.S. industries with especially high domestic unionization. Corresponding with previous research, the results do indicate that monopoly power, foreign tariffs and barriers, and the size and distance of foreign markets are important determinants of U.S. foreign production.