Domestic productivity and variety gains from trade

Migration, Remittances and Capital Accumulation: Evidence from Rural Mexico

“…We do so in case the (time-invariant) product dummies alone turn out to be not enough to fully control for the possible bias generated by the presence of heterogeneous set of exporters across products and time (this may actually occur if there is substantial variation of the value of N i;t , within products, across time). As we can observe, the results in column (2) are essentially identical to those in column (1), although the R squared does rise substantially.…”

“…Both measures of diversi cation, which are described in further detail in the next section, make use of all the available information in terms of total value of imports by source. 2 In terms of results, Section 3 shows that import diversi cation increases monotonically along the growth path. This results remains robust to the inclusion of a large set of additional controls, such as product, importer, product-importer, and time dummies.…”

Chinese competition in OECD markets: impact on the export position and export strategy of OECD countries

“…Further, policy changes, in particular trade liberalization, affects the variety of trade (Agur 2010; Debaere and Mostashari 2010). Ardelean and Lugovskyy (2010) show, moreover, that domestic productivity affects the demand for foreign varieties if domestic and foreign varieties are imperfect substitutes. Finally, the heterogeneity also appears to be driven by sectoral characteristics, including innovation and technological spillovers (Van Hove 2010).…”

Quantiles, corners, and the extensive margin of trade

“…Second, it has been noted that the explanatory variables traditionally considered in trade models may have very di¤erent impacts on the extensive and intensive margins of trade (see, e.g., Lawless, 2010, Hillberry and Hummels, 2008, and Dutt, Mihov, and Van Zandt, 2013. Third, the increase in the variety of imported goods has been associated to increased welfare in the importing country (see, e.g., Romer, 1994, Broda and Weinstein, 2006, and Ardelean and Lugovskyy, 2010. Finally, and perhaps more importantly, diversi…cation of exports has been linked to increases in productivity and more rapid growth (see, e.g., Feenstra et al, 1999, Feenstra and Kee, 2008, and Eicher and Kuenzel, 2016.…”