Figures and Tables

Table 3B

Table 3B: Robustness check (2), alternative measures of financial development (Df1 & Df2)

 

(1)

(2)

(3)

(4)

Df1

 

-0.292** (0.120)

 

 

 

 

 

 

Df1*SIIf

7.724***

 

7.668**

 

 

(2.841)

 

(3.065)

 

Df2

 

 

 

-0.206*** (0.072)

 

 

 

 

Df2*SIIf

 

4.962***

 

5.121***

 

 

(1.662)

 

(1.863)

log(GDP/capita)

0.175

0.097

 

 

 

(0.173)

(0.153)

 

 

TFP

0.068***

0.061***

0.068**

0.059*

 

(0.022)

(0.023)

(0.030)

(0.030)

log(emp)

0.935***

0.937***

0.954***

0.954***

 

(0.094)

(0.093)

(0.101)

(0.100)

SKratio

0.629

0.662

0.866

0.845

 

(0.636)

(0.635)

(0.823)

(0.811)

K/L

0.066***

0.065***

0.068***

0.066***

 

(0.024)

(0.023)

(0.025)

(0.024)

rwage

-0.002

-0.002

-0.001

-0.001

 

(0.007)

(0.007)

(0.009)

(0.009)

GVC Participation

2.549***

2.536***

2.668***

2.658***

 

(0.473)

(0.466)

(0.528)

(0.518)

Country FEs

Yes

Yes

 

 

Sector FEs

Yes

Yes

 

 

Year FEs

Yes

Yes

 

 

Country*Year FEs

 

 

Yes

Yes

Sector*Year FEs

 

 

Yes

Yes

Observations

5,758

5,678

5,758

5,678

R-squared

0.509

0.511

0.530

0.532

Notes: The dependent variable is manufacturing export RCA. Df1 refers to the ratio of bank credits to private sectors to GDP. Df2 is the ratio of bank credits to private sectors and stock market capitalization to GDP. SIIf is the ratio of the U.S. embodied domestic financial services in U.S.’ manufacturing value added, averaged over 1995-2007. All WIOD manufacturing sectors 3-16 are covered (not grouped together). Robust standard errors in parentheses, clustered by country*sector. *** p<0.01, ** p<0.05, * p<0.1.