|Source<br>W D I<br>UNCTAD<br>CEPII<br>World G overnance Indicators<br>W D I<br>ILO<br>ILO<br>W D I<br>W D I<br>Penn World Tables 9.0, W D I<br>W D I<br>Content of D eep Trade Agreem ents<br>Content of D eep Trade Agreem ents<br>Content of D eep Trade Agreem ents<br>Content of D eep Trade Agreem ents<br>Content of D eep Trade Agreem ents<br>Content of D eep Trade Agreem ents<br>CEPII|W D I<br>D oing Business database<br>LPI database|W D I<br>M elitz and Toubal (2014)<br>W D I<br>K ee, Nicita, and O larreaga (2008)<br>W D I<br>Tax Foundation (2019)<br>IM F (2000)<br>ILO<br>Penn World Tables 9.0<br>World G overnance Indicators<br>NBER-CES M anufacturing Industry D atabase<br>NBER-CES M anufacturing Industry D atabase<br>Braun (2003)<br><br>Nunn (2007)<br>UNID O<br>W ITS, TRAINS and Felb erm ayr,<br>Teti and Yalcin (2019)<br>W ITS, TRAINS and Felb erm ayr,<br>Teti and Yalcin (2019)<br>W ITS, TRAINS and Felb erm ayr,<br>Teti and Yalcin (2019)|
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|Variable nam e<br>D e...nition<br>Avg. tari¤ rate<br>Applied tari¤ rate to m anufactured products, weighted m ean (in % )<br>FD I in‡ows (log)<br>Logarithm of net foreign direct investm ent in‡ows (in m illions of USD )<br>D istance to G VC hubs (log)<br>Logarithm of sum of distance to China, G erm any and the US (capital city-to-capital city)<br>Political stability index<br>Political Stability and Absence of Violence/Terrorism : Estim ate<br>D om estic industrial capacity (log)<br>M anufacturing value added (in current USD ) obtained by multiplying nom inal G D P with the share of<br>m anufacturing in value-added<br>Low-skilled lab or share / real G D P (log)<br>Logarithm of the share of em ploym ent of skill level 1 (low) according to the International Standard<br>Classi...cation of O ccupations in total em ploym ent<br>https://www.ilo.org/public/english/bureau/stat/isco/isco08/index.htm<br>M ed/High-skilled lab or share / real G D P (log)<br>Logarithm of the share of em ploym ent of skill levels 2-4 (m ed-high) according to the International Standard<br>Classi...cation of O ccupations in total em ploym ent<br>https://www.ilo.org/public/english/bureau/stat/isco/isco08/index.htm<br>Rents from resources % G D P<br>Total natural resources rents as a p ercentage of G D P<br>Land / real G D P (log)<br>Logarithm of land area (sq. km ) divided by real G D P (in constant 2010 USD )<br>Capital / real G D P (log)<br>Logarithm of real capital stock (in constant 2011 national prices in m il. 2011 US$) divided by real G D P<br>(in constant 2010 USD )<br>Exch. rate appreciation<br>Change in nom inal exchange rate (increase is an appreciation)<br>NAFTA<br>Indicator variable equal to 1 if the country is a m emb er of NAFTA, and 0 otherwise<br>EU<br>Indicator variable equal to 1 if the country is a m emb er of the EU, and 0 otherwise<br>ASEAN<br>Indicator variable equal to 1 if the country is a m emb er of ASEAN, and 0 otherwise<br>M ERCO SUR<br>Indicator variable equal to 1 if the country is a m emb er of M ERCO SUR, and 0 otherwise<br>Nb. of PTA partners (log)<br>Logarithm of the numb er of Preferential Trade Agreem ent (PTA) partners<br>D epth of PTAs (log)<br>Logarithm of the numb er of provisions in deep PTAs as describ ed in Ho¤m an et al. (2017)<br>Exch. rate m isalignm ent<br>Real exchange rate m isalignm ent relative to an equilibrium exchange rate based on the m odel describ ed<br>iChdtl2017|n ouare e a. ()<br>Credit / G D P<br>D om estic credit to private sector as a p ercentage of G D P<br>Tim e to clear im p orts (log)<br>Logarithm of the numb er of days required to im p ort based on the D oing Business 06-15 m ethodology<br>Logistics p erform ance index<br>O verall score of the logistics p erform ance index obtained as a weighted average of the country scores on six<br>key dim ensions: e¢ ciency of the clearance process (i.e., sp eed, sim plicity and predictability of form alities)<br>by b order control agencies, including custom s; quality of trade and transp ort related infrastructure (e.g.,<br>p orts, railroads, roads, inform ation technology); ease of arranging com p etitively priced shipm ents;<br>com p etence and quality of logistics services (e.g., transp ort op erators, custom s brokers); ability to track<br>and trace consignm ents; tim eliness of shipm ents in reaching destination within the scheduled or exp ected<br>|delivery tim e.<br>Internet use<br>Percentage of the p opulation that uses the internet<br>English as second language (% )<br>Percentage of the p opulation that sp eaks english as a second language<br>Fem ale lab or force partic. (% )<br>Share of fem ales in total lab or force<br>Im p ort elasticity<br>Average for each country of the im p ort dem and elasticities estim ated by K ee, Nicita, and O larreaga (2008)<br>for all its m anufacturing products de...ned as those with HS 6-digit codes higher than HS 290000.<br>Total p opulation (log)<br>Logarithm of the total numb er of inhabitants.<br>Corp orate incom e taxes (% )<br>Statutory corp orate incom e tax rate in p ercentage p oints.<br>Transitional economy status<br>Indicator variable for countries that transitioned from com munism to a capitalist regim e.<br>High-skilled lab or share (% )<br>Share of em ploym ent of skill levels 3 and 4 (high) according to the<br>International Standard Classi...cation of O ccupations in total em ploym ent<br>https://www.ilo.org/public/english/bureau/stat/isco/isco08/index.htm<br>Capital / lab or (log)<br>Real capital stock (in constant 2011 national prices in m il. 2011 US$) divided by total em ploym ent<br>Rule of law index<br>Rule of Law: Estim ate<br>Skill intensity<br>Ratio of skilled workers to unskilled workers at the 2-digit level of SIC revision 1987 concorded to the eight<br>sectors in the EO RA database based on industries’verbal descriptions.<br>Capital intensity<br>Ratio of capital to em ploym ent at the 2-digit level of SIC revision 1987 concorded to the eight sectors in the<br>EO RA database based on industries’verbal descriptions.<br>Natural resource intensity<br>Indicator variable for natural resource intensive sectors in the EO RA database (wood and pap er;<br>p etroleum , chem icals and non-m etallic m inerals; and m etal products)<br>Contract intensity<br>Share of sp ecialized and custom ized interm ediate inputs used in the production of the ...nal good for each industry<br>3-digit ISIC revision 2 industry based on a U.S. input-output table. Sp ecialized and custom ized interm ediate<br>inputs are those not sold on an organized exchange nor reference-priced according to Rauch (1999) s<br>relationships. The 3-digit ISIC revision 2 level is concorded to the eight sectors in the EO RA database based on<br>industries’verbal descriptions.<br>Technology intensity<br>Indicator variable de...ning whether an ISIC sector is technology-intensive or not, based on research<br>and developm ent exp enditure incurred in the production of m anufactured goods.<br>Average output tari¤<br>Tari¤s im p osed at hom e on im p orts of the sector are constructed by ...rst aggregating tari¤s (taking the<br>sim ple average) and im p orts (taking the sum ) to the EO RA sector level. Then im p orts are sum m ed across<br>countries of origin to obtain im p ort weights which are used to com pute tari¤s im p osed at hom e on im p orts<br>of a sector as a weighted-average tari¤ at the rep orting country-EO RA sector-year level.<br>Average input tari¤<br>Tari¤s im p osed at hom e on im p orts of interm ediate inputs used are constructed by ...rst keeping tari¤ data<br>and im p ort data only for HS 6-digit products classi...ed as interm ediates according to the UN BEC<br>classi...cation. The sim ple average of tari¤s is taken and im p orts are sum m ed at the EO RA sector level.<br>Im p orts are sum m ed across countries of origin to obtain im p ort weights which are used to com pute an<br>auxiliary m easure of tari¤s on im p orts of BEC interm ediates at the rep orting country-EO RA sector-year level.<br>Then, based on the US Input-O utput table for 2005 from W IO D which was aggregated to the eight EO RA<br>m anufacturing sectors, we construct for each sector the share of its total interm ediate inputs that originates<br>in each of the eight EO RA sectors. Finally, we combine these I-O table weights with the auxiliary tari¤s on<br>im p orts of BEC interm ediates to construct a weighted-average tari¤ on interm ediate inputs at the rep orting<br>country-EO RA sector-year level.<br>Average m arket access tari¤<br>Tari¤s im p osed in destination m arkets on exp orts of the sector are constructed by ...rst taking the sim ple<br>average of tari¤s and sum m ing exp orts at the EO RA sector level. Then, exp orts are sum m ed across<br>destination m arkets to com pute exp ort weights at the rep orting country-EO RA sector-year level which<br>allows us to construct a weighted-average of the tari¤s the destination m arkets im p ose.<br>FD I pro jects<br>Sum of announced green...eld FD I pro jects from all source countries for a given country-sector-year,<br>cumulative since 2003. Sectors are concorded to the 8 m anufacturing EO RA sectors.|

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