Services Development and Comparative Advantage in Manufacturing

(1)

(2)

(3)

(4)

(5)

(6)

D_f

2.445

(3.766)

forsh_f

0.246

0.989

(0.499)

(1.295)

D_f*forsh_f

-8.962**

-32.749

(4.376)

(22.928)

D_b

16.921*** (5.080)

forsh_b

1.070

2.801**

(0.660)

(1.113)

D_b*forsh_b

-20.873***

-45.683***

(8.025)

(15.308)

D_fb

6.959** (3.374)

forsh_fb

0.991

3.265**

(0.820)

(1.548)

D_fb*forsh_fb

-12.261***

-35.116***

(4.499)

(12.198)

log(GDP/capita)

-0.183

-0.182

-0.168

(0.204)

(0.220)

(0.217)

TFP

0.071**

0.078**

0.073**

0.051

0.057

0.050

(0.034)

(0.032)

(0.034)

(0.050)

(0.050)

(0.051)

log(emp)

0.880***

0.888***

0.889***

0.894***

0.907***

0.918***

(0.080)

(0.081)

(0.080)

(0.089)

(0.089)

(0.090)

SKratio

0.320

0.179

0.256

0.317

0.283

0.315

(0.713)

(0.689)

(0.716)

(0.935)

(0.910)

(0.924)

K/L

0.145**

0.150**

0.151**

0.178**

0.189**

0.182**

(0.072)

(0.072)

(0.072)

(0.090)

(0.088)

(0.088)

rwage

-0.018*

-0.016*

-0.017*

-0.021

-0.017

-0.018

(0.010)

(0.010)

(0.010)

(0.014)

(0.013)

(0.013)

GVC Participation

0.913***

0.940***

0.928***

1.033***

1.004***

1.024***

(0.289)

(0.293)

(0.290)

(0.335)

(0.338)

(0.337)

Country FEs

Yes

Yes

Yes

Sector FEs

Yes

Yes

Yes

Year FEs

Yes

Yes

Yes

Country*Year FEs

Yes

Yes

Yes

Sector*Year FEs

Yes

Yes

Yes

Observations

2,901

2,901

2,901

2,901

2,901

2,901

R-squared

0.596

0.598

0.598

0.622

0.626

0.626