Trade and Employment From Myths to Facts - International Labour ...

Trade and Employment: From Myths to Facts
Figure 7.4: Average Theil indices in 2006 on each of the ten explanatory variables
in 2005 (Continued)
266
Export Theil index
2 4 6 8
Export Theil index
2 4 6 8
0 5.00e+07 1.00e+08 1.50e+08 2.00e+08
Population
0 10000 20000 30000 40000
per capita GDP (constant US$2,000)
These figures reveal links between export diversification and each of these variables,
which, importantly, have the expected signs. A similar test run using the number
of exported products instead of the Theil index provides very similar figures, suggesting
that our variables influence essentially the extensive margin. 11 In order to get further
insights on the impact of the set of variables described above on the extensive and
intensive margins, we turn to a regression analysis. We regress the overall Theil index,
the within-groups Theil, the between-groups Theil and the number of exported products
on the ten variables using a panel database, including 87 countries over the
11 These figures are available from the authors upon request.