The Evolution of Distribution of US Imports Open Access

Luo, Bei (Spring 2018)

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This paper uses Functional Principal Component Analysis (FPCA) to evaluate the evolution of distributions of US imports in manufacturing industries from 1974 to 2001, incorporating a set of discrete variables including sub-industry classification and duty coverage. FPCA uncovers that the ratio between the imports from South countries and that from North countries accumulating

from a wide-tail spread towards the mean. In the meanwhile, the ratio between South countries and North countries in the difference between FiB and CiF values also collaborated towards the mean regardless of the industries. The results illustrate the effect of the product cycle that emphasizes on the comparative advantage of time and technology when a new product was initially invented and the graduate shift of production as time passes.

Table of Contents

Table of Contents...1

List of Figures...2

1 Introduction...2

2 Data Description...4

3 Methodology Review...5

4 Estimation Results and Analysis...7

5 Final Conclusions and Remarks 15

A Industry Figures 18

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