The aim of this paper is to investigate the effect of domestic and foreign outsourcing on level of employment. We will distinguish between narrow outsourcing (intra-industrial purchases of inputs) and broad outsourcing (inputs from all sectors). Outsourcing is calculated using domestic and import – use matrices of input-output tables for 28 Spanish manufacturing industries for the period 1993 t...

We propose a framework to estimate earnings distributions and worker and firm unobserved heterogeneity on matched panel data. We introduce two models: a static model that allows for interaction effects between workers and firms, and a dynamic model that allows in addition for Markovian dynamics in earnings and mobility decisions. We establish identification in short panels. We develop a tractab...

This paper proposes the transformed maximum likelihood estimator for short dynamic panel data models with interactive fixed effects, and provides an extension of Hsiao et al. (2002) that allows for a multifactor error structure. This is an important extension since it retains the advantages of the transformed likelihood approach, whilst at the same time allows for observed factors (fixed or ran...

Questioning the underlying assumptions of the process of creative destruction, we conceptualize an alternative process of creative construction that may characterize the dynamics between entrants and incumbents. We discuss the underlying mechanism of knowledge spillover strategic entrepreneurship whereby knowledge investments by existing organizations, when coupled with entrepreneurial action b...

Fixed effects estimates of structural parameters in nonlinear panel models can be severely biased due to the incidental parameters problem. In this paper I show that the most important component of this incidental parameters bias for probit fixed effects estimators of index coefficients is proportional to the true parameter value, using a large-T expansion of the bias. This result allows me to ...

We investigate which variables have supported growth in the euro area over last 30 years. This is a challenging task due to dimensionality problems: large set of potential determinants, limited data, and prospect that some could be non-stationary. assemble 35 real, financial, monetary, institutional for nine original countries covering period between 1990Q1 2016Q4. Using Weighted-Average Least ...

This paper extends Symeonidis (2003)’s duopoly model with product differentiation to discusses how FDI spillovers that decreases the quality difference between vertically differentiated products of the home and foreign firms affects the home firm’s decision on plant location. This paper shows that whether the degree of spillover is exogenous or endogenous, it may have a positive relationship wi...

We investigate the impact of knowledge spillovers and R&D cooperation on innovation activities in three German regions. We begin by estimating the knowledge-production function in order to test for interregional difference with regard to the efficiency of innovation activities. In a second step, we analyze the contribution of spillovers from R&D effort of other private firms and of public resea...

in this paper, the effect of trade openness on growth is examined across the members of organization of the islamic conference (oic) by using convergence-growth equation and gmm-system dynamic panel data estimator over the period 1980-2009. the results show that the overall trade, the trade with non-oic countries, and the investment in physical and human capital stimulate economic growth. in co...

almost ideal demand system (aids) and rotterdam model have been employed to (by means of seemingly unrelated regression (sur) estimate the function related to milk and dairy products in the urban societies of iran for years 1982 to 2009. cross and cross price elasticities have been evaluated too. results indicated that during the study period, share of milk products in household budget was more...