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... We first rely on a text analysis based on the description of products in order to associate a 6-digit product code to each establishment (following Imbert et al., 2022, see Appendix B.1). We further complement the establishment data with product-level information, in particular a benchmark input-output matrix (United States, 2000), measures of technological closeness using patenting in the United States (Bloom et al., 2013), and the revealed factor intensity using the factor endowments of countries producing each good (Shirotori et al., 2010). We use the production functions derived in Imbert et al. (2022) to measure factor productivity (see Appendix B.2). ...
... We proceed in a similar fashion to define: (i) a measure of technological closeness, Tech. clos., based on the 95% quantile in the intensity of patent citations across different industries (Bloom et al., 2013); and (ii) a measure of competition on factor markets based on revealed factor intensities as predicted by trade patterns in 2000 (see Shirotori et al., 2010). 24 Table 6 (Panel A) reports the relative presence of establishments operating downstream, upstream, and in the same product market as the local MRP(s). ...
... For the purpose of our work, we merge information at province level for the period 2002-2011 on the stock of migrants, available from the Demographic Portal of ISTAT, with data on manufacturing exports by HS-6 digit product level, available from the ISTAT-COE database, which we use as proxy for production flows. 1 The structure of province exports is then combined with a product level indicator of capital intensity developed by UNCTAD (Shirotori et al., 2010) to obtain a measure of capital intensity of Italian provinces' export baskets. ...
... The capital intensity of Italian provinces is obtained by combining data on the capital intensity at product level with information on the structure of each province's manufacturing sector. To measure the capital intensity at the HS1996 six-digit product level, we compute the indicator developed by UNCTAD (Shirotori et al., 2010). The indicator mimics the calculation of the PRODY index put forth by Hausmann et al. (2007) and is based on the assumption that products' factor intensities reflect the factor endowment of the exporting countries. ...
... The indicator mimics the calculation of the PRODY index put forth by Hausmann et al. (2007) and is based on the assumption that products' factor intensities reflect the factor endowment of the exporting countries. The capital intensity of good g, K g , is then computed as the weighted average of the capital stock per worker in US $-available from the UNCTAD's RFII database (Shirotori et al., 2010)-of the countries exporting that good: ...
We study the impact of immigration on the product mix of the receiving economy by combining information on the local presence of immigrants with a highly detailed definition of the set of goods produced by Italian provinces. For the period 2002–2011, we find that an increase in the share of migrants shifts the manufacturing output composition of host provinces in favour of less capital intensive products. This evidence is based on an IV strategy resting on the settlement of immigrants in the pre-sample period and is robust to several sensitivity checks. We shed light on two mechanisms potentially driving our result. On the one hand, we show that immigration reduces provinces’ dependence on imports of low capital intensity intermediate goods. On the other hand, immigration fosters relatively more the creation of new firms in local low capital intensity industries.
... Studies by Romalis (2004) 3 succeeded in proving the theory that the proportion of owned resources factors of a country is a determinant of the structure of commodities in international trade. Another method to bring up the RCA of the intensity of the use of production factors in a product is the index of Revealed Factor Intensity (RFI) for each product that is traded as a weighted average of resource exporting countries with such variants as the Balassa RCA index scales to ensure that the size of the country does not interfere with the ranking of goods (Shirotori, Tumurchudur, and Cadot, 2010). This index is constructed using a methodology developed by Hausmann, Hwang, and Rodrik (2005), later known as Prody. ...
... The idea is a product that is exported by high-income countries and more likely to be technology-intensive compared to countries that have a low income. Revealed Capital Intensity (RCI) is calculated as follows (Shirotori, Tumurchudur, and Cadot, 2010): ...
The classic thesis by Mundell, with the modification of Heckscher-Ohlin model, stated that a substitution relation flows between trade and international capital. Mundell showed that the equilibrium price of a commodity can be obtained through international factor mobility in the absence of trade in goods or vice versa, if the trade barriers of the factor price equilibrium are eliminated. Therefore, the factor price equalization will be achieved without requiring the exchange of goods between countries. Consequently, the study of international trading and capital flows is more frequently studied separately. However, empirical data have shown the contradictory phenomena in which both of them are interrelated and complementary, but how the two interact is still relatively rarely observed. Some constructions of new theories indicate that interactions between them can be studied through several channels; one of them is through the change in comparative advantage. This paper tries to analyze the interaction between trade and international capital flows in ASEAN countries + 4 (ASEAN plus India, China, Japan, and Korea). The countries included in this group are important players in international trading and represent the world's largest trading integration. The interaction between trade and international capital flows is linked via change of trading structure, as seen from the intensity of the use of production factors in the industry in each country. The results of the study are consistent with the theory that capital will flow to countries that have a capital-intensive industrial structure. This then leads to an increase in the deficit in the country’s current account balance.
... For the purpose of our work, we merge information at province level for the period 2003-2011 on the stock of migrants, available from the Demographic Portal of ISTAT, with data on manufacturing exports by HS-4 digit product level, available from the ISTAT-COE database, which we use as proxy for production flows. 1 The structure of province exports is then combined with a product level indicator of capital intensity built by UNCTAD (Shirotori et al., 2010) to calculate a measure of capital intensity of Italian provinces' export baskets. ...
... Our results hold to a number of sensitivity checks, including the use of different IVs and the adoption of further second stage indicators measuring the skill intensity of goods (Shirotori et al., 2010), as well as their sophistication level . Other robustness we perform involve including further controls to our baseline specification and estimating alternative models. ...
... We start by collecting information on capital intensity at product level. In particular, we rely on the indicator developed by UNCTAD for products classified in HS1996 at the 6-digit level (Shirotori et al., 2010). ...
What is the impact of immigration on the product mix of the receiving economy? To answer this question we exploit variation in the presence of immigrants across Italian provinces within the period 2003-2011. We find that immigration changes the manufacturing output composition of Italian provinces in favour of less capital intensive products, without affecting the total amount of manufacturing production. This result is based on a 2SLS strategy resting on the settlement of immigrants in the pre-sample period and is in line with the predictions of standard trade models concerning the role of factor growth on product specialisation. More specifically, immigrants sustain and deepen Italy's revealed comparative advantages in labour intensive goods. We thus add to the existing studies finding within-industry adjustments of factor usage in production rather than between-industry output adjustments in response to immigration flows. When searching for the underlying mechanisms driving our result, we discover that a larger share of immigrants promotes the local reshoring of labour intensive productions and fosters the creation of new firms in labour intensive industries.
... (2012) which quantifies average distance from final use for each product. 165 Fourth, we use human capital intensity taken from Shirotori et al. (2010) to study whether there is a differential relationship between migrants and products with different knowledge intensities. These last three variables are continuous, and we standardize them to have zero mean and a standard deviation of one. ...
This dissertation explores the interaction between migration and productivity, through multiple angles, across three different countries and period contexts. Specifically, I study the labor market benefits of migrant mobility during an economic crisis, productivity gains due to migrant mobility in the reconstruction of a country in the aftermath of a war, and gains associated with a higher concentration of people in larger urban areas. I address these subjects both theoretically and empirically, using rich confidential social security data from Spain, Germany, and Turkey, applying a variety of panel data techniques and historical instruments to estimate causal relationships. The findings of these studies relate to many issues that interest both the academia and the policymakers yet on which little is known. This dissertation aims to contribute to knowledge gap on issues that will remain relevant foreseeable future.
... Analyzing firm-level data, we also find larger negative effects of PAN wins on larger exporting firms. Furthermore, building on previous work in the literature, we construct product level measures of capital and skill intensity (Shirotori et al., 2010), and external capital dependence (Kaplan and Zingales, 1997). We show that export growth of products that rely more on long-term capital, skill intensity, and external sources of capital suffer a larger decrease. ...
This thesis consists of three essays in financial economics. In the first chapter, I test for the existence of a new channel through which politicians can exchange favors with campaign donors: different payment periods in procurement contracts. I explore an electoral reform that bans corporate contributions. The reform partially breaks down the relationship between donors and politicians: firms that donate in the previous election can no longer commit to contributing with the same intensity in the next election. Using a within-firm difference-in-differences identification strategy, I find that the payment period to firms that donate to the coalition government increases by five days after the reform. I study the heterogeneity of this effect and find that it is larger in municipalities with low liquidity and for contracts allocated through competitive procurement methods. The results provide an explanation – preferential treatment after the bidding stage – for the persistent evidence of quid pro quo even in competitive auctions. Moreover, the results point to the importance of designing rules that curb discretion over payment periods. In the second chapter, co-authored with Jesús Gorrín and José Morales, we study the trade effects of increases in violence following the Mexican Drug War. A focus on exports allows us to control for demand shocks. We compare exports of the same product to the same country of destination, but produced in municipalities with different exposure to violence after a close electoral outcome. We show that municipalities that are exogenously exposed to the Drug War experience a 45% decrease in export growth on the intensive margin. Large exporters suffer larger effects, along with exports of more complex, capital-intensive, and skill-intensive products. Finally, we provide evidence consistent with violence increasing marginal exporting costs. In the the third chapter, I study tax and redistributive policies in a dynastic model that features borrowing constraints, occupational choice and preferences for bequests. Borrowing constraints arise from moral hazard. In the absence of taxes, individuals that start with different levels of wealth converge to different steady-states, and poverty traps may occur. The introduction of inheritance taxation creates a trade-off: on the one hand, they tighten borrowing constraints, and thus they deplete the short-run aggregate productivity of the economy; on the other hand, they can be an instrument to fight poverty traps, wealth inequality and, in some cases, maximize long-run aggregate productivity.
... One reason for the low level of high-tech OFDI is that the high capital demands of the associated industries act as a barrier to entry. According to a United Nations report, high-tech sectors such as chemical industries and the manufacture of machinery and transport equipment are the most capital and human capital intensive [38]. ...
... First, we look at differentiated versus homogenous and reference-priced goods, using the definition of Rauch (1999) (i.e., a dummy variable). Second, we use the physical capital intensity level of each product" as defined by Nunn (2007) Shirotori et al. (2010) to study whether there is a differential relationship between migrants and products with different knowledge intensities. These last two variables are continuous, and we standardize them to have zero mean and a standard deviation of one. ...
During the early 1990s Germany received over half a million Yugoslavian refugees fleeing war. By 2000, many of these refugees, who were under temporary protection, had been repatriated. We exploit this historical episode to provide causal evidence on the role that migrants play explaining export performance in global markets after returning to their home country. We find that the elasticity of exports to return migration is between 0.1 to 0.24 in industries where migrants were employed during their stay in Germany. In order to deal with endogeneity we use historic exogenous rules of allocation of asylum seekers across different German states to construct an instrumental variable for the treatment. The results are mostly driven by knowledge-intensive industries, and by workers in occupations intensive in analytical and managerial skills.
... In particular, they find that the macro elasticity is significantly lower than the micro elasticity for up to one-half of the goods considered, relying on both simulation studies and highly disaggregated U.S. data. 208 with an indicator inspired by Revealed Factor Intensity (RFI) developed by Shirotori et al. (2010), and in particular the level of human capital of each exporter country and its' distribution for each product. In the case of a temporary supply shock, the importing country will look for alternative suppliers with similar characteristics to those who provided the temporally unavailable good. ...
This doctoral dissertation investigates the impact of networks effects on international trade and finance. The first chapter estimates the role a trade partners’ centrality plays in the diffusion of knowledge and finds that importing from countries at the core of the network leads to a significant increase in economic growth. The second chapter investigates the role of clusters in the speed of technology adoption and concludes that the diffusion of ideas is fostered among countries belonging to the same cluster. The third chapter emphasizes the role of current partners in choosing a destination for new investments and finds that countries are more likely to invest in a new destination if one of their existing partners have already made some investments in the location. The fourth chapter evaluates the impact of importing risky products on the economy and finds that the elasticity of a country’s exports with respect to its import share of fragile products from a partner impacted by a natural disaster is -0.7 percent.
... EXPYs reflect the global average labor-market outcome of goods that appear in Myanmar's export basket. The PRODYs and EXPYs are calculated using mirror data from UN Comtrade, World Bank Business Environment and Enterprise Performance Surveys, and Shirotori, Tumurchudur, and Cadot (2010). ...
... World Bank staff calculations based on mirror data from UN Comtrade, World Bank Business Environment and Enterprise Performance Surveys, andShirotori, Tumurchudur, and Cadot (2010). ...
Notes in this report present the nature of jobs in each sector (except the public sector), the challenges to improving these sectors, and recommended policies to develop sector-specific jobs strategies. Building on the government's Myanmar Sustainable Development Program (MSDP), which provides a framework for jobs policy reform, this report identifies priority area that could have the greatest impact in each sector in promoting this framework. The accompanying Overview document presents the overall jobs picture based on this report. Note 1 addresses the overall Myanmar macroeconomic environment for jobs, while Note two profiles the Myanmar labor force. Notes three, four, five, and six explore jobs in agriculture, household enterprises, the private sector, and through migration. The Notes are designed to be standalone documents that can be used to inform discussions with appropriate Ministries or stakeholders.
CITATION
Cunningham, Wendy; Munoz Moreno, Rafael; Rahardja, Sjamsu; Hollweg, Claire Honore; Leao, Izabela; Ekanayake, Indira Janaki; Ahmed, Md Mansur; Amin, Mohammed; Rab, Habib Nasser; Yoong, Pui Shen. 2018. Myanmar's Future Jobs : Embracing Modernity - Main Report . Washington, D.C. : World Bank Group.
https://hubs.worldbank.org/docs/ImageBank/Pages/DocProfile.aspx?nodeid=30398006
