Trade, Technology, and Plant Performance

Previous research shows that both exporting and the use of advanced technologies independently enhance the performance of U.S. manufacturing plants in a variety of ways. The research presented below shows that plants that both export and use advanced technology outperform other plants in a number of important ways: they increase their employment more rapidly, they pay higher wages, and they are less likely to fail. The research also shows that manufacturing plants that use advanced technologies are more likely to export.