Beugelsdijk, Brakman, Garretsen, and van Marrewijk International Economics and Business
© Cambridge University Press, 2013
Chapter 4 – Modern trade theory: the role of the firm
Table 4.1 Intra-industry trade per country in 2006, ranked from high to low
Country
Share of world
trade (%)
Share of 5-digit
sectors traded (%)
Grubel-Lloyd
index
1
France
4.47
99.8
0.424
2
Austria
1.13
99.5
0.421
3
Canada
2.86
99.7
0.421
4
Germany
9.40
99.7
0.419
5
Czech Republic
0.77
99.2
0.412
6
Switzerland
1.55
99.6
0.396
7
Belgium
2.94
99.7
0.394
8
Hungary
0.57
98.2
0.365
9
United Kingdom
4.07
99.8
0.362
10 Italy
3.84
99.8
0.344
:
:
:
:
:
84 countries have a Grubel-Lloyd index of zero, including United Arab Emirates,
Vietnam, Bangladesh, Nigeria, Tunisia, Kuwait, and Sri Lanka.
Source: based on data from Bruehlhart (2009); index per country is 5-digit weighted average.
Beugelsdijk, Brakman, Garretsen, and van Marrewijk International Economics and Business
© Cambridge University Press, 2013
Chapter 4 – Modern trade theory: the role of the firm
Table 4.2 Cross-country determinants of intra-industry trade, 2006
(dependent variable = log transformed Grubel-Lloyd index)
All sectors
Primary
Intermediate
Final
Log mean per capita GDP
1.617*
(0.08)
1.534*
(010)
1.918*
(0.08)
1.513*
(0.08)
Log difference per capita
GDP
0.0444
(0.07)
-0.097
(0.09)
0.189*
(0.07)
-0.0668
(0.07)
Log distance
-0.700*
(0.09)
-1.161*
(0.11)
-0.622*
(0.09)
-0.923*
(0.09)
Contiguity
1.571*
(0.41)
1.672*
(0.53)
2.006*
(0.45)
1.327*
(0.44)
Observations
1375
1354
1374
1373
R2
0.33
0.28
0.34
0.31
Source: based on Bruehlhart (2009); * indicates statistical significance at the 1% level.
Beugelsdijk, Brakman, Garretsen, and van Marrewijk International Economics and Business
© Cambridge University Press, 2013
Chapter 4 – Modern trade theory: the role of the firm
Table 4.3 Exporter premia in US manufacturing, 2002
Exporter premia (%)
Employment
Shipments
Value-added per worker
TFP – total factor productivity
Wage
Capital per worker
Skill per worker
Additional covariates
164
194
12
3
6
13
12
Industry fixed effects
Source: based on Bernard et al. (2007, Table 3); all results are significant at the 1 percent level.
Beugelsdijk, Brakman, Garretsen, and van Marrewijk International Economics and Business
© Cambridge University Press, 2013
Chapter 4 – Modern trade theory: the role of the firm
Table 4.4 Productivity, exports, and foreign-ownership
Normalized
productivity
National
Exporter
Foreign
Domestic
Foreign
Exporter
Size Medium
Size Large
Ln(GDP/cap)
Constant
1
Manufactures
2
4
Services
5
3
6
0.046
0.039
0.043
0.020
0.013
0.013
(8.53)**
0.081
(7.43)**
0.070
(8.03)**
0.070
(1.79)
0.103
(1.13)
0.087
(1.17)
0.087
(9.80)**
0.092
(8.79)**
0.076
(8.80)**
0.075
(11.70)**
0.109
(9.96)**
0.078
(9.91)**
0.082
(10.12)**
0.042
(10.19)**
0.069
(12.83)**
0.115
(33.15)**
-0.670
(21.56)**
6146
0.23
(8.53)**
0.038
(9.60)**
0.065
(12.36)**
0.126
(21.66)**
-0.715
(13.74)**
6146
0.29
(8.39)**
0.036
(8.97)**
0.063
(11.91)**
0.080
(6.97)**
-0.174
(1.35)
6146
0.32
(5.63)**
0.024
(3.99)**
0.009
(1.23)
0.067
(11.69)**
-0.206
(4.00)**
3075
0.09
(4.15)**
0.018
(3.03)**
0.008
(1.05)
0.049
(4.61)**
0.103
(1.05)
3075
0.17
(4.32)**
0.019
(3.20)**
0.009
(1.22)
0.032
(1.12)
0.187
(0.71)
3075
0.20
0.000**
0.002**
0.660
0.000**
0.001**
0.801
Observations
R-squared
Test if coefficients are significantly different, F-test (Prob > F)
0.000**
0.001**
0.002**
0.000**
NE v FD
0.000**
0.000**
0.001**
0.000**
NE v FE
0.330
0.635
0.705
0.761
FD v FE
Source: Chang and van Marrewijk (2013).
Dependent variable: normalized productivity; robust t statistics in parentheses; * significant at 5%; ** significant at
1%; the specification in columns 2, 3, 5 and 6 include sector and country fixed effects; the 3rd and 6th specification
also include sector-country interaction fixed effects; NE = National Exporter; FD = Foreign Domestic; FE = Foreign