@techreport{NBERw5473,
 title = "Domestic Distortions and the Deindustrialization Hypothesis",
 author = "Paul Krugman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5473",
 year = "1996",
 month = "March",
 URL = "http://www.nber.org/papers/w5473",
 abstract = {It is widely believed that U.S. trade deficits have displaced workers from highly paid manufacturing jobs into less well-paid service employment, contributing to declining incomes for the nation as a whole.  Although proponents of this view do not usually think of it this way, this analysis falls squarely into the `domestic distortions' framework pioneered by Jagdish Bhagwati.  This paper models the deindustrialization hypothesis explicitly as a domestic distortions issue, and shows that while it makes conceptual sense it is of limited quantitative importance.},
}