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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

NZL could export more to

NZL could export more to Latin America and partof Asia and less to Northern EuropeDifference between actual and estimated shares of total exports to country5.0AUS3.0NZL1.0-1.0-3.0Source: Bosquet and Boulhol (2013): What is really puzzling about the “distance”puzzle?34

No evidence could be found that better market accessboosts the returns to R&D or human capital….Dependent variable: (1) (2) (3) (4) (5)log GDP per capitaInvestment rate 0.2101*** 0.2182*** 0.2164*** 0.2041*** 0.2331***(0.0222) (0.0210) (0.0206) (0.0227) (0.0227)Human capital (Years of 0.3127*** 0.2151*** 0.2323*** 0.2623*** 0.3671***schooling)(0.0713) (0.0602) (0.0570) (0.0703) (0.0741)Population growth -0.0006 0.0203 0.0191 0.0030 -0.0055(0.0303) (0.0258) (0.0254) (0.0275) (0.0276)Business R&D/GDP0.0351*** 0.0319*** 0.0393***(0.0116) (0.0111) (0.0145)Trade OpenessWeighted sum of Marketand Supplier Access0.0478**(0.0195)0.0789***(0.0199)Human capital interactedwith urban agglomerationCountry fixed effects Yes Yes Yes Yes YesTime fixed effects Yes Yes Yes Yes Yes0.3386***(0.0694)R squared 0.9999 0.9999 0.9999 0.9999 0.9999Number of observations 560 509 509 428 532…But the estimates provide tentative evidence that urbanconcentration increases returns to human capital35

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