A new approach for estimating trade elasticities and measuring the productivity effects associated with trade (dataset and codes)

Description

This dataset accompanies the paper "A New Approach for Estimating Trade Elasticities and Measuring the Productivity Effects Associated with Trade". It contains the data and Stata code used to replicate the analysis presented in the paper. These files include: .dta files: Stata datasets used in the analysis. .do files: Stata scripts containing the code to perform the estimations and obtain the tables and figures. Readme file: Instructions and guidance for reproducing the results. This paper provides a new method for estimating trade elasticities based on a production model where trade elasticities and technological parameters are estimated simultaneously. Using data from the World Input-Output Database, we obtain trade elasticities that align with those reported in the literature. Following the theoretical framework by Caliendo et al. (2018), we derive the benefits of international trade on total factor productivity (TFP). Our proposed production model is later used to understand the main determinants of the countries’ and sectors’ participation in international trade, as well as measuring the different factors affecting productivity changes due to the Covid-19 pandemic.

Steps to reproduce

For a more detailed description the steps to reproduce the analysis and the files included in the folder, please follow the file "Readme" attached. Instructions for Replication: - Run the .do file: To replicate the entire analysis and generate the results, execute the Stata script (.do file). The script merges the datasets where necessary and performs the calculations, simulations, and comparisons as discussed in the paper. - Output: After running the .do file, you will have access to all results, including the estimation of trade elasticities, productivity effects, and relevant simulations (e.g., embeddedness effect, COVID-19 impact). Additional Notes: • Please check the directory of the .dta and .do files before running the code. • If any issues arise during replication, or if additional clarification is needed, please contact the authors.

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