Measuring Openness

Jean Imbs and Laurent Pauwels

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: It is well-known that exporting firms grow fast, are large and productive. No such correlation exists at sector (or even country) level, which could happen either because of aggregation or because openness measures are often ad-hoc in aggregate data. We introduce a measure capturing the response of output to foreign shocks in theory: It computes the value of domestically produced goods sold to final consumers abroad, which is easy to calculate from widely available input-output tables. Empirically our measure implies that open sectors are productive, fast growing, and synchronized. No other existing openness measure has these implications at sector level.

Keywords: Measurement of Openness; Global Value Chains; Shock Propagation; Growth; Synchronization (search for similar items in EconPapers)
JEL-codes: C80 F15 F44 F62 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2020-05, Revised 2023-01
New Economics Papers: this item is included in nep-int, nep-mac and nep-opm
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Citations: View citations in EconPapers (1)

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https://cama.crawford.anu.edu.au/sites/default/fil ... riginal_may_2020.pdf Original version (application/pdf)
https://cama.crawford.anu.edu.au/sites/default/fil ... evised_june_2020.pdf Revision version (application/pdf)
https://cama.crawford.anu.edu.au/sites/default/fil ... revised_jan_2023.pdf Revision version (application/pdf)

Related works:
Working Paper: Measuring Openness (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2020-48

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