U.S.'s returning to manufacture "hopeful": expert

There is hope for the United States to reclaim the status as a major manufacturer, a U.S. expert said.

"I do believe there is some reason for hope for U.S. manufacturing," Steven R. Cunningham, director of research and education at the American Institute for Economic Research, told Xinhua in a recent interview.

"Many firms who moved their production facilities elsewhere in the world are now coming back. Labor costs are rising outside the U.S., and other incentives are being lost. All of this is making the U.S. look more and more attractive," he said.

In addition, "there have also been proposals to reduce U.S. corporate taxes, which would also serve to bring firms home," Cunningham said.

Asked on what kind of the problems may have caused the prolonged U.S. economic downturn, he said based on the study of his institute, there were a number of features that have contributed to it.

"First, we found a strong correlation between the total amount of domestic debt that a country is carrying and the length and severity of the downturn."

Secondly, he said, the starting point of the recession was a financial crisis.

"Third, as a result of globalization, firms are forced to be competitive with prices," said the expert.

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