Journal
JOURNAL OF INTERNATIONAL ECONOMICS
Volume 93, Issue 1, Pages 67-75Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jinteco.2013.12.001
Keywords
Bounded data; Estimation of trade models; Number of sectors
Categories
Funding
- ESRC [ES/H02123X/1, ES/L500343/1] Funding Source: UKRI
- Economic and Social Research Council [ES/L500343/1, ES/H02123X/1] Funding Source: researchfish
Ask authors/readers for more resources
Understanding and quantifying the determinants of the number of sectors or firms exporting in a given country is of relevance for the assessment of trade policies. Estimation of models for the number of exporting sectors, however, poses a challenge because the dependent variable has both a lower and an upper bound, implying that the partial effects of the explanatory variables on the conditional mean of the dependent variable cannot be constant. We argue that ignoring these bounds can lead to erroneous conclusions and propose a flexible specification that accounts for the doubly-bounded nature of the dependent variable. We empirically investigate the problem and the proposed solution, finding significant differences between estimates obtained with the proposed estimator and those obtained with standard approaches. (C) 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3-0/).
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available