Tariff Reduction Boosts Productivity in U.S. Manufacturing Sector, Study Finds.
The article explores how reducing tariffs in the U.S. manufacturing sector affects overall productivity. By analyzing data from different companies, the researchers found that lower tariffs can lead to increased productivity in firms. This is because more productive companies tend to enter the export market, while less productive ones stay domestic or exit the market. This reallocation of resources boosts industry and overall productivity, benefiting the economy.