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Giulia Felice

Bio: Giulia Felice is an academic researcher from Polytechnic University of Milan. The author has contributed to research in topics: Product innovation & Investment (macroeconomics). The author has an hindex of 9, co-authored 24 publications receiving 413 citations. Previous affiliations of Giulia Felice include University of Milan & Complutense University of Madrid.

Papers
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Journal ArticleDOI
TL;DR: In this article, the authors explore the idea that a firm's export status may improve its ability to introduce product innovations (learning by exporting) using very rich firm-level data on Italian manufacturing, which enables them to control for many confounding factors in the exporting-product innovation link (i.e. selection on observable variables).
Abstract: A firm’s export status may improve its ability to introduce product innovations (learning by exporting). We explore this idea using very rich firm‐level data on Italian manufacturing, which enables us to control for many confounding factors in the exporting–product innovation link (i.e. selection on observable variables). We also make an attempt to address the potential self‐selection of firms into exporting according to unobservable characteristics using an industry–province specific measure of firm distances from their most likely export markets, and of these export markets’ potentials as sources of presumably exogenous variations in export status using an instrumental variables strategy. We find that export status significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger markets (and accordingly firm size) or higher investments in R&D. We argue that heterogeneity in foreign customers’ tastes and needs may explain our findings.

124 citations

Journal ArticleDOI
TL;DR: In this article, the authors explore the idea that a firm's export status may improve its ability to introduce product innovations (learning by exporting) using very rich firm-level data on Italian manufacturing, which enables them to control for many confounding factors in the exporting-product innovation link.
Abstract: A firm’s export status may improve its ability to introduce product innovations (learning by exporting). We explore this idea using very rich firm-level data on Italian manufacturing, which enables us to control for many confounding factors in the exporting–product innovation link (i.e. selection on observable variables). We also make an attempt to address the potential self-selection of firms into exporting according to unobservable characteristics using an industry–province specific measure of firm distances from their most likely export markets, and of these export markets’ potentials as sources of presumably exogenous variations in export status using an instrumental variables strategy. We find that export status significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger markets (and accordingly firm size) or higher investments in R&D. We argue that heterogeneity in foreign customers’ tastes and needs may explain our findings.

97 citations

Journal ArticleDOI
TL;DR: In this paper, the authors study how changing sectoral composition in employment and output shares affects aggregate growth by modeling a two-sector economy with a technologically progressive industry, which produces for consumption and investment, and a technologically stagnant industry producing only for consumption.

59 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigate the relationship between participation in global value chains and countries' innovation performance, using the recently released world input-output database to build spillover variables by weighting the aggregate R&D stock of partners supplying inputs with two alternative measures of participation in GVCs: the share of foreign value added in a country gross exports and the offshoring index.
Abstract: In this paper we investigate the relationship between participation in global value chains (GVCs) and countries’ innovation performance. We use the recently released world input–output database to build spillover variables by weighting the aggregate R&D stock of partners supplying inputs with two alternative measures of participation in GVCs: the share of foreign value added in a country’s gross exports and the offshoring index. We use these indicators to test empirically the relationship between a country’s innovation performance, proxied by patent per capita, and spillovers generated by GVCs. Our results show that the involvement in GVCs, in particular for developing countries importing inputs from advanced economies, is positively related with a country’s innovation outcome suggesting that international fragmentation of production can indeed be a channel allowing for international technology transfer from developed to developing countries.

43 citations

Posted Content
TL;DR: This article analyzed the relationship between changes in the sectoral composition of an economic system and the aggregate dynamics of employment and output, with the specific aim to thoroughly understand the process of increasing service sector shares.
Abstract: This work analyses the relationships among the changes in the sectoral composition of an economic system and the aggregate dynamics of employment and output, with the specific aim to thoroughly understand the process of increasing service sector shares. Starting from Baumol’s (1967, 1985) and Pasinetti’s (1984) contributions, we point out a distinction between two types of structural dynamics, which come out from the interaction of sector specific technical progress and demand patterns. The first type is characterized by a relatively higher income elasticity and demand growth in the sectors with productivity growth above the average. The employment shares of these sectors expand. The second type is characterized by a relatively higher income elasticity and demand growth in the sectors with productivity growth below the average. This structural dynamics is likely to emerge if demand is not elastic to prices and the technical change is sector specific. Under these circumstances, the subset of aggregate outcomes which implies full employment growth is particularly restricted by the need for a specific appropriate balance between sectors with different rates of productivity growth. Changes in relative prices do not guarantee sectoral proportions consistent with a full employment growth path. The identification of the two dynamics is then carried out at the empirical level too, proposing an empirical evidence which is based on the top five industrialized countries (US, UK, Ger., Fr., Italy) in 22 sectors (including services) over the period 1965-1995. The analysis of the long run sectoral elasticities and the one of the cross-sectors correlations show evidence of the second type of structural dynamics.

29 citations


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TL;DR: In this paper, the authors investigated conditions sufficient for identification of average treatment effects using instrumental variables and showed that the existence of valid instruments is not sufficient to identify any meaningful average treatment effect.
Abstract: We investigate conditions sufficient for identification of average treatment effects using instrumental variables. First we show that the existence of valid instruments is not sufficient to identify any meaningful average treatment effect. We then establish that the combination of an instrument and a condition on the relation between the instrument and the participation status is sufficient for identification of a local average treatment effect for those who can be induced to change their participation status by changing the value of the instrument. Finally we derive the probability limit of the standard IV estimator under these conditions. It is seen to be a weighted average of local average treatment effects.

3,154 citations

Journal ArticleDOI
TL;DR: In this paper, the authors studied the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms and showed that the increase in revenues produced by trade integration can induce exporters to upgrade technology.
Abstract: This paper studies the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms. To guide empirical work, I introduce technology choice in Melitz’s (2003) model of trade with heterogeneous firms. The joint treatment of the technology adoption and exporting choices shows that the increase in revenues produced by trade integration can induce exporters to upgrade technology. An empirical test of the model reveals that firms in industries facing higher reductions in Brazil’s import tariffs increase their investment in technology faster and exporters upgrade technology faster than other firms in the same industry.

1,365 citations

Posted Content
TL;DR: The authors showed that the growth rate is an inverted U-shaped function of net changes in inequality: Changes in inequality (in any direction) are associated with reduced growth in the next period.
Abstract: This paper describes the correlations between inequality and the growth rates in cross-country data. Using non-parametric methods, we show that the growth rate is an inverted U-shaped function of net changes in inequality: Changes in inequality (in any direction) are associated with reduced growth in the next period. The estimated relationship is robust to variations in control variables and estimation methods. This inverted U-curve is consistent with a simple political economy model, although, as we point out, efforts to interpret this model causally run into difficult identification problems. We show that this non-linearity is sufficient to explain why previous estimates of the relationship between the level of inequality and growth are so different from one another.

942 citations

Posted Content
TL;DR: In this article, the authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.
Abstract: This book opens a fresh chapter in the debate on local enterprise clusters and their strategies for upgrading in the global economy. The authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.

913 citations

Journal ArticleDOI
TL;DR: This article examined the frequency, pervasiveness, and determinants of product switching by US manufacturing firms and found that one-half of firms alter their mix of five-digit SIC products every five years, and that product switching is correlated with both firm-and firm-product attributes.
Abstract: This paper examines the frequency, pervasiveness, and determinants of prod uct switching by US manufacturing firms. We find that one-half of firms alter their mix of five-digit SIC products every five years, that product switching is correlated with both firm- and firm -product attributes, and that product adding and dropping induce large changes in firm scope. The behavior we observe is consistent with a natural generalization of existing theories of industry dynam ics that incorporates endogenous product selection within firms. Our findings suggest that product switching contributes to a reallocation of resources within firms toward their most efficient use. (JEL LI 1, L21, L25, L60) The extent to which resources are allocated to their best use is a core issue of economics. Until now, research into industry dynamics has addressed this issue by focusing almost exclusively on the contribution of firm entry and exit to resource reallocation, that is, whether newly created firms or plants are more productive than the dying firms and plants they replace.1 This paper examines a new, "extensive" margin of firm adjustment, the reassignment of resources that takes place within surviving firms as they add and drop (i.e., "switch") products. Our analysis of product switching makes use of a unique longitudinal dataset that tracks US firms' product-level manufacturing output across quinquennial US Manufacturing Censuses

820 citations