Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics

Ciccone, Antonio; Papaioannou, Elias

doi:10.3386/w22368

Cited by 27 publications

(41 citation statements)

References 40 publications

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“…Our results are in line with previous findings in the literature, such as Ciccone and Papaioannou (2010), who conclude that financial development facilitates the reallocation of capital from declining industries to industries with good investment opportunities, and Fisman and Love (2007), who find that industries with good growth opportunities, grow more rapidly in countries with well-developed financial markets. We are not able to confirm the results in the literature that there is a threshold above which a higher level or rapid growth in financial development results in a less efficient allocation of resources, probably because of our sample's heavy tilt towards emerging market economies.…”

Section: Introductionsupporting

confidence: 93%

Capital Misallocation and Financial Development: A Sector-Level Analysis

Marconi

Upper

2017

SSRN Journal

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Section: Introductionsupporting

confidence: 93%

Capital Misallocation and Financial Development: A Sector-Level Analysis

Marconi

Upper

2017

SSRN Journal

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“…when it takes on values between zero and one. 19 In this case, following Pepke and Wooldridge (1996), we assume that the conditional mean of the entry (exit) rate is a logit function G of the independent variables and we estimate the following Generalized Linear Model (GLS) by quasi-maximum likelihood:…”

Section: Baseline Resultsmentioning

confidence: 99%

Firm dynamics and employment protection: Evidence from sectoral data

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Firm Dynamics and Employment ProtectionIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. In this paper we analyse the impact of employment protection legislation (EPL) on firms' entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms' entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings.JEL Classification: J65, L11, L26

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“…1 Second, researchers have started to use cross-country cross-industry analysis to 3 study domestic institutions as determinants of comparative advantage, especially of industry export flows (see Nunn andTrefler, 2013 andCiccone andPapaioannou, 2016 for reviews). The idea in this literature is that the institutions in a country can be an endowment in much the same way that traditional production factors such as labour and capital are.…”

Section: Introductionmentioning

confidence: 99%

“…These drawbacks include biased results on the count of so-called attenuation and amplification effects (Nunn and Trefler, 2013;Ciccone and Papaioannou, 2016) and the use of blunt instrumental variables (Bazzi and Clemens, 2013) that violate the exclusion restriction (see, also, for example Algan and Cahuc, 2013 for a discussion of violations of the exclusion restriction in social trust studies).…”

mentioning

confidence: 99%

“…5 An important feature of my industry work autonomy measure is that it comprises individual-level data from multiple countries and not just one country, as is typical in the literature. A problem for cross-country cross-industry studies is so-called benchmarking bias, which can shift estimates downwards or upwards (Nunn and Trefler, 2013;Ciccone and Papaioannou, 2016). A downward, attenuating bias occurs because the benchmarking of industries is subject to random measurement error.…”

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confidence: 99%

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Social trust, workplace organization, and the comparative advantage of nations

Hoorn

2017

Oxf. Econ. Pap.

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In this paper, I consider a specific channel through which trust between parties to an exchange can go on to affect nations' comparative advantage in certain industries. My approach revolves around the autonomy that employers (principals) grant to workers (agents), which is a key feature of workplace organization. I hypothesize that social trust generates a comparative advantage in industries with more autonomous micro production environments. I employ individual-level data on work autonomy to construct a measure of the extent to which industries are characterized by autonomy in the production process. Results of a cross-country cross-industry analysis confirm that countries with higher levels of

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Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics

Cited by 27 publications

References 40 publications

Capital Misallocation and Financial Development: A Sector-Level Analysis

Capital Misallocation and Financial Development: A Sector-Level Analysis

Firm dynamics and employment protection: Evidence from sectoral data

Social trust, workplace organization, and the comparative advantage of nations

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