42 research outputs found
The boring infrastructure that Rwanda needs
Sometimes, the infrastructure that is needed is old and boring. In the 21st century, where the world is electronically interconnected and global information transfers happen in the fraction of a second, building electronic, communication infrastructure is an important component of economic success. Even small farmers in rural Africa benefit from these information transfers. For example, transfers can help spread knowledge of agricultural prices from distant markets. The challenge for governments, particularly low-income country governments, is to build infrastructure capacity in these ānewā forms of electronic infrastructure, while not forgetting about the āoldā infrastructure
Trade Growth under the African Growth and Opportunity Act
This paper explores whether one of the most important U.S. policies towards Africa of the past few decades achieved its desired result. In 2000, the United States dropped trade restrictions on a broad list of products through the African Growth and Opportunity Act (AGOA). Since the Act was applied to both countries and products, we estimate the impact with a triple difference-in-differences estimation, controlling for both country and product-level import surges at the time of onset. This approach allows us to better address the āendogeneity of policyā critique of standard difference-in-differences estimation than if either a country or a product-level analysis was performed separately. Despite the fact that the AGOA product list was chosen to not include āimport-sensitiveā products, and despite the general challenges of transaction costs in African countries, we find that AGOA has a large and robust impact on apparel imports into the U.S., as well as on the agricultural and manufactured products covered by AGOA. These import responses grew over time and were the largest in product categories where the tariffs removed were large. AGOA did not result in a decrease in exports to Europe in these product categories, suggesting that the U.S.-AGOA imports were not merely diverted from elsewhere. We discuss how the effects vary across countries and the implications of these findings for aggregate export volumes.trade liberalization; sub-Saharan Africa; policy evaluation
Trade Growth under the African Growth and Opportunity Act
This paper explores whether one of the most important U.S. policies towards Africa of the past few decades achieved its desired result. In 2000, the United States dropped trade restrictions on a broad list of products through the African Growth and Opportunity Act (AGOA). Since the Act was applied to both countries and products, we estimate the impact with a triple difference-in-differences estimation, controlling for both country and product-level import surges at the time of onset. This approach allows us to better address the "endogeneity of policy" critique of standard difference-in-differences estimation than if either a country or a product-level analysis was performed separately. Despite the fact that the AGOA product list as chosen to not include "import-sensitive" products, and despite the general challenges of transaction costs in African countries, we find that AGOA has a large and robust impact on apparel imports into the U.S., as well as on the agricultural and manufactured products covered by AGOA. These import responses grew over time and were the largest in product categories where the tariffs removed were large. AGOA did not result in a decrease in exports to Europe in these product categories, suggesting that the U.S.-AGOA imports were not merely diverted from elsewhere. We discuss how the effects vary across countries and the implications of these findings for aggregate export volumes.
Trade growth under the African growth and opportunity act.
This paper explores whether one of the most important U.S. policies towards Africa of the past few decades achieved its desired result. In 2000, the United States dropped trade restrictions on a broad list of products through the African Growth and Opportunity Act (AGOA). Since the Act was applied to both countries and products, we estimate the impact with a triple difference-in-differences estimation, controlling for both country and product-level import surges at the time of onset. This approach allows us to better address the "endogeneity of policy" critique of standard difference-in-differences estimation than if either a country or a product-level analysis was performed separately. Despite the fact that the AGOA product list as chosen to not include "import-sensitive" products, and despite the general challenges of transaction costs in African countries, we find that AGOA has a large and robust impact on apparel imports into the U.S., as well as on the agricultural and manufactured products covered by AGOA. These import responses grew over time and were the largest in product categories where the tariffs removed were large. AGOA did not result in a decrease in exports to Europe in these product categories, suggesting that the U.S.-AGOA imports were not merely diverted from elsewhere. We discuss how the effects vary across countries and the implications of these findings for aggregate export
Identification Properties of Recent Production Function Estimators
Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/116342/1/ecta1558_am.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/116342/2/ecta1558.pd
Under-Identification of Structural Models Based on Timing and Information Set Assumptions
We revisit identification based on timing and information set assumptions in
structural models, which have been used in the context of production functions,
demand equations, and hedonic pricing models (e.g. Olley and Pakes (1996),
Blundell and Bond (2000)). First, we demonstrate a general under-identification
problem using these assumptions in a simple version of the Blundell-Bond
dynamic panel model. In particular, the basic moment conditions can yield
multiple discrete solutions: one at the persistence parameter in the main
equation and another at the persistence parameter governing the regressor. We
then show that the problem can persist in a broader set of models but
disappears in models under stronger timing assumptions. We then propose
possible solutions in the simple setting by enforcing an assumed sign
restriction and conclude by using lessons from our basic identification
approach to propose more general practical advice for empirical researchers
Structural identification of production functions
This paper examines some of the recent literature on the identiļæ½cation of production functions. We focus on structural techniques suggested in two recent papers, Olley and Pakes (1996), and Levinsohn and Petrin (2003). While there are some solid and intuitive indentiļæ½cation ideas in these papers, we argue that the techniques, particularly those of Levinsohn and Petrin, suĀ¤er from collinearity problems which we believe cast doubt on the methodology. We then suggest alternative methodologies which make use of the ideas in these papers, but do not suĀ¤er from these collinearity problems
Structural identification of production functions
This paper examines some of the recent literature on the identiļæ½cation of production functions. We focus on structural techniques suggested in two recent papers, Olley and Pakes (1996), and Levinsohn and Petrin (2003). While there are some solid and intuitive indentiļæ½cation ideas in these papers, we argue that the techniques, particularly those of Levinsohn and Petrin, suĀ¤er from collinearity problems which we believe cast doubt on the methodology. We then suggest alternative methodologies which make use of the ideas in these papers, but do not suĀ¤er from these collinearity problems