||||Pr|odu|ctivity||C|ost andpr|ices|
|---|---|---|---|---|---|---|---|---|---|
|||||T|FPQ(Foster|TFPQala|||Marginal|
||bservations|Wages|TFPR|e|<br>al)|<br>deLoecker|Price|Mark-up|cost|
||||Panel|a: B|ase OLS es<br>|<br>timation<br>||||
|Chile|22.151|0.017**<br>” 0.007)|0.010***<br>(0.002)|—<br> "|0.030***<br>(0.007)|—_—_———___—_<br>-0.001<br>”<br>(0.004)|_—__T_T!<br>-0.022""*"<br>” (0.007)|—_——_—_—_—_<br><br>0.003<br> ” (0.003)|—_—__<br>a,<br>-0.024***<br> ” (0.009)|
|Colombia|«61,001|0.038""*|" 0.003|"|-0.004|"<br>0.004|"0.006|” -0.006|"<br>0.013|
|||”(0.007)|”(0.003)|"|(0.010)|”<br>(0.004)|(0.010)|”(0.004)|”(0.011)|
|Indonesia|—-169,899|<br>0.057*** <br>”(0.013)|<br> 0.022"<br>(0.006)|<br>*"<br>"|-oo11<br>(0.016)|”<br>-0.002<br>”<br>(0.002)|<br>0.033**<br>(0.014)|<br>-0.016***<br>”(0.006)|<br><br>0.047"**<br>”(0.014)|
|Ethiopia|7,356|<br>0.052*<br>”(0.026)|<br>” -0.023<br>(0.019)|<br>"|-0.061**<br>(0.027)|="<br>-0.007<br>”(0.013)<br>|<br>” 0.038<br>”(0.023)|<br>=-0.071** <br>”(0.030)|<br> = 0.111**<br>”(0.043)|
|||<br>P|<br>anel b: In|<br>stru|ment variabl<br>|<br> <br>e estimation<br>||||
|Chile|22.103|0.020*|0.011***||L<br>—-0.040***|O<br>0.002|-0.029**|"0.006|-0.034***|
|||”(0.011)|”(0.003)|"|(0.012)|”(0.005)<br>|<br>”(0.011)|<br>”(0.004)|<br>”(0.013)|
|Colombia|‘58,702|<br>0.053***|<br> " 0.003||-0.025*|<br> <br>"<br>0.003|<br>0.025**|<br>-0.012"*|<br>0.040"**|
|||”0.014)|(0.006)|"|(0.013)|”<br>(0.007)|”(0.011)|”(0.005)|”(0.014)|
|Indonesia<br>|‘153,645|<br>0.147*** <br>|<br> 0.0548" <br>|<br> "<br>|0.044<br>|”<br>0.004<br>|<br>"0.009<br>|<br>-0.034**<br>|<br>*"<br>0.040<br>|
|Ethiopia|7.356|” (0.046) <br>"0075<br>|" (0.012) <br>"-0.068<br>|"<br>"<br>|(0.036)<br>-0.087<br>|” (0.005) <br>”<br>-0.038<br><br>|” (0.032) <br>"9013<br>|” (0.012) <br>"-0.016<br>|” (0.035)<br>"<br>0.056<br>|
|||||||||||
|||<br>Panel|<br> c: Base e|<br>stim|ation with p|<br> <br>lant fixed effect|<br>s|||
|Chile|21,196|0.052<br>|i,<br>~~ -0.048<br>||0.394<br>|LT—<br>-0.394**<br><br>|—_<br>-0.447<br>|TE<br>© -0.302 <br>|~ -0.124<br>|
|||”(0.235)|"(0.114|"|(0.411)|”(0.178)<br>|”(0.398)|"(0.204)|”(0.488)|
|Colombia|59,027|<br>” 9.003|<br>” 0.002||0.016|<br> <br>"<br>0.005|<br>"0.013|<br>" 0.004|<br>” -0.018|
|||”(0.005)|”(0.002)|"|(0.010)|”(0.005)<br>|”(0.009)|”(0.005)|”(0.012)|
|Indonesia<br>|«166,353|<br>0.040**<br>|<br>0.023" <br>|<br> "<br>|0.032<br>|<br> <br>0.008*<br>|<br>"9.008<br>|<br>” -0.002<br>|<br>” -0.001<br>|
|Ethiopia|6,503|(0.016)<br>"9.004<br>|(0.010) <br>" -0.013<br>|"<br>"<br>|(0.032)<br>-0.020<br>|” (0.004)<br>”<br>-0.011<br><br>|=” (0.035) <br>"0.008<br>|” (0.008) <br>-0.046%* <br>|” (0.039)<br> "<br>0.040<br>|
|||”(0.013)|”(0.010)|"|(0.024)|"<br>(0.019)|—_”(0.023)|”(0.022)|"(0.043)|
||||<br>Panel d: Co|<br>ntr|olling forhu|man capital||||
|Colombia|—-61.001|0.040***|—0.005*||-0.006|0.004|a<br>0.010|,<br>-0.006*|as<br>©0.017|
|||”(0.008)|<br>”(0.003)||(0.010)|”<br>(0.004)|(0.010)|”(0.004)|<br>”(0.011)|
|Indonesia|«158,277|<br>0.040***<br>|<br>o.o16** <br>|"<br>|-0.021<br>|”<br>-0.003<br><br>|<br>0.038**<br>|<br>-0.016***<br>|<br><br>0.051***<br>|
|||”(0.014)|”(0.006)|"|(0.019)|”<br>(0.002)|—_-”(0.015)|”(0.006)|”(0.015)|
||||<br>Panel e:|<br> Al|ternative ti|me periods||||
|Colombia|«49.076|0.036*** <br>” (0.007)|F ~er, <br> " 0.004<br> " (0.003)|FY<br> "|~~, <br>-0.003<br>(0.010)|FT<br>0.006<br>”<br>(0.004)|.F-- <br>0.007 <br>” (0.010)|F<br>i, <br> ° 0.002<br> ” (0.004)|FF...<br>0.006<br> ” (0.011)|
|Indonesia|—-157,650|0.057***|09.022"|""|9.008|”<br>-0.002|0.031**|-0.016***|0.045***|
|||<br>” (0.013) <br>|<br> ” (0.006) <br>|"|(0.016)<br>|”<br>(0.002)<br><br>|(0.014) <br>|” (0.006) <br>|” (0.014)<br>|
|Ethiopia|6.919|0.050*|”-0.023||-0.061%*|"<br>0.002|”0.037|"-0.074|0.108"|
|||”(0.026)|<br>(0.019)|"|(0.026)|”<br>(0.016)|<br>”(0.022)|<br>”(0.049)|”(0.057)|

Notes: The table presents elasticity estimates for wages, TFPR. TFPQ (following Foster et al. and a la de Loecker et al), firm aggregate price index, mark-up and marginal costs. All estimations include pair-wise 4-digit industry and year fined effects and control for firm age. Estimations on wages and prices also control for firm size. In Chile, the density measure is at the municipality-level, except for the 7 metro areas and likewise for Colombia. In Ethiopia towns are the spatial unit while districts are used in Indonesia. Standard errors are clustered at spatial level for which density is measured. Estimations report standard errors. *, **, and *** denote statistical significance at the 10%, 3% and 1% levels, respectively. For panel b, the instruments comprise of geological variabes. In Chile, precipitation and temperature differences across spatial units are used as an IV; in Colombia instruments include: yearly temperature, elevation, precipitation, terrain ruggedness and slope. In Ethiopia, we use elevation, slope, temperature, and precipitation as the instruments and in Indonesia we use terrain ruggedness, elevation and slope. Panel ¢ additionally includes plant fixed effects on base estimations in panel a. Panel d specifications additionally control for human capital for the spatial unit under consideration (literacy). In panel 2, estimations considers a subset of the full period. In Colombia, the year 2000-01 is dropped due to the crisis, while Indonesia covers the full period 2000-2015 excluding the year of the financial crisis - 2008, and in Ethiopia it covers 2000-2009, dropping 2005 when the coverage was not uniform.