Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics

• 成果类型: Article
• 署名作者: Ciccone, Antonio; Papaioannou, Elias
• 署名单位: University of Mannheim; Center for Economic & Policy Research (CEPR); University of London; London Business School
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueac047
• 发表日期: 2022
• 页码: 130-158
• 关键词: financial dependence; PRODUCTIVITY; TRADE; pattern; credit; RIGHTS; aid

摘要

Cross-industry cross-country models are used to address a wide array of questions in economics. They do so by analysing how the economic performance of industries in different countries depends on an interaction effect between industry and country characteristics. As the relevant industry characteristics are unobservable in most countries, they are approximated by industry characteristics in a benchmark country. We show that this approach generally yields biased estimates of the industry-country interaction effect. The sign of the bias depends on whether or not technologically similar countries tend to be similar in other country characteristics. We propose an alternative estimation approach.