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| The U.S. Content of “Made in China” |
Although globalization is widely recognized these days, the U.S. economy actually remains relatively
closed. The vast majority of goods and services sold in the United States is produced here. In 2010,
imports were about 16% of U.S. GDP. Imports from China amounted to 2.5% of GDP.
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"Goods and services from China accounted for only 2.7% of U.S. personal consumption expenditures in 2010, of which less than half reflected the actual costs of Chinese imports. The rest went to U.S. businesses and workers transporting, selling, and marketing goods carrying the “Made in China” label. Although the fraction is higher when the imported content of goods made in the United States is considered, Chinese imports still make up only a small share of total U.S. consumer spending. This suggests that Chinese inflation will have little direct effect on U.S. consumer prices."
Read the full report
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FRBSF Economic Letter, 2011-25 August 8, 2011-Federal Reserve Board of San Fransisco, Galina Hale and Bart Hobijin
08.08.2011
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