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 intermedi...

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Main Authors:	Cadot, Olivier, Shakurova, Yuliya
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Production E230 Country and Industry Studies of Trade F140 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change Industrial Price Indices L160
Online Access:	http://hdl.handle.net/10986/5485

id	okr-10986-5485
recordtype	oai_dc
spelling	okr-10986-54852021-04-23T14:02:22Z Endowments, Specialization, and Policy Cadot, Olivier Shakurova, Yuliya Macroeconomics: Production E230 Country and Industry Studies of Trade F140 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change Industrial Price Indices L160 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. 2012-03-30T07:33:03Z 2012-03-30T07:33:03Z 2010 Journal Article Review of International Economics 09657576 http://hdl.handle.net/10986/5485 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Production E230 Country and Industry Studies of Trade F140 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change Industrial Price Indices L160
spellingShingle	Macroeconomics: Production E230 Country and Industry Studies of Trade F140 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change Industrial Price Indices L160 Cadot, Olivier Shakurova, Yuliya Endowments, Specialization, and Policy
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	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.
format	Journal Article
author	Cadot, Olivier Shakurova, Yuliya
author_facet	Cadot, Olivier Shakurova, Yuliya
author_sort	Cadot, Olivier
title	Endowments, Specialization, and Policy
title_short	Endowments, Specialization, and Policy
title_full	Endowments, Specialization, and Policy
title_fullStr	Endowments, Specialization, and Policy
title_full_unstemmed	Endowments, Specialization, and Policy
title_sort	endowments, specialization, and policy
publishDate	2012
url	http://hdl.handle.net/10986/5485
_version_	1764395223770726400

Endowments, Specialization, and Policy

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