Services Development and Comparative Advantage in Manufacturing
Figures and Tables
Table 4
Table 4: Robustness check (3), using alternative services input intensity measures for financial & business services combined (fb)
|
|
(1) |
(2) |
(3) |
|
|
Use time-varying U.S. services input intensity |
Use countries' own time- varying services intensity |
Use U.K.'s average Services input intensity |
|
Dfb*SIIfb |
23.941*** |
11.965*** |
30.300** |
|
|
(6.546) |
(4.147) |
(14.332) |
|
TFP |
0.064** |
0.067** |
0.067** |
|
|
(0.028) |
(0.029) |
(0.029) |
|
log(emp) |
0.964*** |
0.944*** |
0.969*** |
|
|
(0.099) |
(0.095) |
(0.099) |
|
SKratio |
0.800 |
0.730 |
0.746 |
|
|
(0.818) |
(0.682) |
(0.687) |
|
K/L |
0.070*** |
0.075*** |
0.070*** |
|
|
(0.026) |
(0.027) |
(0.025) |
|
rwage |
0.000 |
-0.001 |
0.001 |
|
|
(0.009) |
(0.008) |
(0.008) |
|
GVC Participation |
2.575*** |
2.572*** |
2.556*** |
|
|
(0.496) |
(0.499) |
(0.498) |
|
Country*Year FEs |
Yes |
Yes |
Yes |
|
Sector*Year FEs |
Yes |
Yes |
Yes |
|
Observations |
5,686 |
5,855 |
5,714 |
|
R-squared |
0.597 |
0.591 |
0.593 |
Notes: The dependent variable is manufacturing export RCA. Dfb refers to the share of financial & business services value added in GDP. In regression (1), SIIfb is the ratio of the U.S. embodied domestic financial & business services to U.S.' manufacturing value added (not averaged over years). In regression (2), SIIfb measures countries' own services input intensity (not averaged over years). In regression (3), SIIfb is the ratio of the U.K. embodied domestic financial & business services to U.K.' manufacturing value added, averaged over 1995-2007. All WIOD manufacturing sectors 3-16 are covered (not grouped together). U.S. observations are dropped from regression (1) and the U.K. observations are dropped from regression (3). Robust standard errors in parentheses, clustered by country*sector. *** p<0.01, ** p<0.05, * p<0.1.