Trade Openness and Volatility



Table A6. Correlation of Annual Output Growth per Worker with Rest of the Manufacturing
Sector: Panel Robustness Results

(1)

(2)

(3)

(4)

(5)

(6)

Trade/Output

-0.022*

-0.021*

-0.048**

-0.026*

-0.053**

-0.018+

(0.010)

(0.010)

(0.007)

(0.010)

(0.007)

(0.011)

Output per worker

0.008

-0.022

-0.020

-0.004

(0.014)

(0.026)

(0.014)

(0.027)

Avg. output per worker

-0.019

(0.031)

Growth of output per worker

-0.010

(0.124)

Var(TOT)

-0.002

(0.003)

Var(Trade)

0.000

(0.004)

Share of manuf. trade

0.470**
(0.046)

Liq. needs×Private credit/GDP

0.812**
(0.309)

Observations

4161

4147

4117

4094

4133

3809

R2

0.672

0.672

0.055

0.684

0.078

0.712

μt

yes

yes

no

yes

no

yes

μc × μi

yes

yes

no

yes

no

yes

μi × μt

no

no

yes

no

yes

no

Notes: Robust standard errors in parentheses. + significant at 10%; * significant at 5%; ** significant at 1%. The
sample period is 1970-99. The dependent variable is the correlation of the growth rate of output per worker with the
rest of the manufacturing sector, 1970-99. All variables are in natural logs except for Liq. needs
× Private credit/GDP
and Output per worker growth. ‘Liq. needs’ stands for Raddatz (2005)’s sector-level measure of liquidity needs, which
is inventories over sales, calculated using COMPUSTAT data. All variables are period averages, except for output
per worker which is the period’s initial value.
μc denotes the country fixed effects. μi denotes the sector fixed effects.
All specifications are estimated using OLS.

39



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