Endowments, Specialization, and Policy
The paper explores the relationship between industry shares in production and their determinants including factor endowments, technology, and government policies, in a GDP-function framework. We use a new international panel dataset on production and trade compiled by the World Bank. As an intermediate step we calculate Hicks-neutral productivity indices that vary across industries, time, and countries. We find that own-TFP is robustly associated with industry shares across time and countries and that, after correcting for these productivity differences, output shares are related to factor endowments (Rybczynski effects) in a plausible way. Once Rybczynski effects are controlled for, we find little evidence of demand-side policies (import tariffs) affecting the allocation of resources; we find, however, more role for supply-side policies as the relative size of capital-intensive industries is positively associated with infrastructure-capital endowments. Copyright © 2010 Blackwell Publishing Ltd.
Year of publication: |
2010
|
---|---|
Authors: | Cadot, Olivier ; Shakurova, Yuliya |
Published in: |
Review of International Economics. - Wiley Blackwell, ISSN 0965-7576. - Vol. 18.2010, 5, p. 913-923
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Endowments, specialisation, and policy
Cadot, Olivier, (2010)
-
Endowments, Specialization, and Policy
Cadot, Olivier, (2010)
-
Endowments, Specialization, and Policy
Cadot, Olivier, (2010)
- More ...