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- BHH Export Similarity Index −2 0 2 4 6 Simliarity Index (e=0.25) The figure contains three scatterplots comparing our original (BHH) Export Similarity Index and the recalculations of the Similarity Index using different values of ε (0.001, 0.01 and 0.25 from left to right), for all country pairs, in year 2000. Figure A2: Stylized Facts Similarity Index (ε = 0.001) 0 1 2 3
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- BHH Export Similarity Index −4 −3 −2 −1 0 1 Prox. Weighted SI The figure is a scatterplot comparing our original (BHH) Export Similarity Index and the Proximity Weighted Export Similarity Index for all country pairs, in year 2000. some discontinuity in the declining relation with distance, but it is declining overall. We turn to study this more in detail by replicating model (3), using on the LHS a normalized version of the Proximity Weighted Similarity Index (with mean zero and unit standard deviation). The results are presented in Table A6. Consistently with the results in the main body of the paper, longer distances are negatively correlated with similarity in exports, while countries sharing a border and in the same region tend to have a larger proximity weighted similarity index, as opposed to non-neighboring countries in different regions.
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- Border 0.0531 0.0257 0.2404 0.1861 (0.020)*** (0.022) (0.068)*** (0.077)** Same Region 0.0869 0.0114 0.2353 0.1491 (0.010)*** (0.012) (0.030)*** (0.041)*** Same Language 0.0154 0.0382 (0.013) (0.044) Have/Had Colonial Relationship -0.0282 0.1381 (0.023) (0.120) Common Colonizer 0.0075 -0.0580 (0.016) (0.042) Abs. Dif. Ln GDP Per Capita (PPP) -0.0568 -0.3711 (0.009)*** (0.028)*** Abs. Dif. Ln Population -0.0081 0.0103 (0.003)*** (0.011) Log Total Bilateral Trade (Imp + Exp) -0.0100 -0.0174 (0.001)*** (0.002)*** Abs. Dif.
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- Density 0 .2 .4 .6 .8 1 Export Similarity Index All Pairs Neighbors Pairs Distribution .1 .2 .3 .4 Export Similarity Index 250 1250 2500 3750 5000 Distance .35*exp( −.221*dcc’) Average by Distance NPRB Products Only The left panel of the figure shows the distributions (in year 2000) of the F&K Export Similarity Index for All (not neighbors) Country Pairs, and for Neighbors Pairs only. The right panel shows the average F&K Export Similarity Index for country pairs in each bracket of distance between 250 km. to 5000 km. The upper figures use the F&K Similarity Index for all products, and the lower figures use the F&K Similarity Index for NPRB products only.
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- Density −.2 0 .2 .4 .6 .8 Export Similarity Index All Pairs Neighbors Pairs Distribution .1 .2 .3 .4 .5 Export Similarity Index 250 1250 2500 3750 5000 Distance .408*exp( −.259*dcc’) Average by Distance NPRB Products Only The left panel of the figure shows the distributions (in year 2000) of the Export Similarity Index (using ε = 0.25) for All (not neighbors) Country Pairs, and for Neighbors Pairs only. The right panel shows the average Export Similarity Index (using ε = 0.25) for country pairs in each bracket of distance between 250 km. to 5000 km. The upper figures use the Export Similarity Index (using ε = 0.25) for all products, and the lower figures use the Export Similarity Index (using ε = 0.25) for NPRB products only.
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- Density −.2 0 .2 .4 .6 .8 Export Similarity Index All Pairs Neighbors Pairs Distribution .1 .2 .3 .4 .5 Export Similarity Index 250 1250 2500 3750 5000 Distance .424*exp( −.243*dcc’) Average by Distance NPRB Products Only The left panel of the figure shows the distributions (in year 2000) of the Indexed-RCA Export Similarity Index for All (not neighbors) Country Pairs, and for Neighbors Pairs only. The right panel shows the average Indexed-RCA Export Similarity Index for country pairs in each bracket of distance between 250 km. to 5000 km. The upper figures use the Indexed-RCA Similarity Index for all products, and the lower figures use the Indexed-RCA Similarity Index for NPRB products only.
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- Density −1 −.5 0 .5 1 Export Similarity Index All Pairs Neighbors Pairs Distribution .2 .3 .4 .5 .6 .7 Export Similarity Index 250 1250 2500 3750 5000 Distance .435*exp( −.0871*dcc’) Average by Distance NPRB Products Only The left panel of the figure shows the distributions (in year 2000) of the Proximity Weighted Export Similarity Index for All (not neighbors) Country Pairs, and for Neighbors Pairs only. The right panel shows the average Proximity Weighted Export Similarity Index for country pairs in each bracket of distance between 250 km. to 5000 km. The upper figures use the Proximity Weighted Similarity Index for all products, and the lower figures use the Proximity Weighted Similarity Index for NPRB products only.
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- Figure A12: Decomposition of Similarity Index for Korea and Japan in 2008 −1 −0.5 0 0.5 1 −1 −0.8 −0.6 −0.4 −0.2 0 0.2 0.4 0.6 0.8 1
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- Figure A13: Category of Products Driving Similarities per Region (Year 2008) 0 .2 .4 .6 .8 1 S u b S a h a r a n A f r i c a L a t i n A m e r i c a a n d t h e C a r i b b e a n M i d d l e E a s t a n d N o r t h A f r i c a W o r l d E a s t e r n E u r o p e S o u t h A s i a E a s t A s i a a n d P a c i f i c W e s t e r n a n d C e n t r a l E u r o p e N o r t h A m e r i c a
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- Ln GDP Per Capita (PPP) -0.1612 -0.2816 (0.035)*** (0.030)*** Abs. Dif. Ln Population -0.0447 -0.0483 (0.012)*** (0.010)*** Log Total Bilateral Trade (Imp + Exp) -0.0324 -0.0246 (0.003)*** (0.002)*** Abs. Dif. Ln Pysical Capital Per Worker -0.0077 -0.0203 (0.032) (0.027) Abs. Dif.
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- Ln GDP Per Capita (PPP) -0.2030 -0.1994 (0.021)*** (0.021)*** Abs. Dif.
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- Ln GDP Per Capita (PPP) -0.2977 -0.3413 (0.028)*** (0.030)*** Abs. Dif. Ln Population -0.0842 -0.0606 (0.012)*** (0.011)*** Log Total Bilateral Trade (Imp + Exp) -0.0294 -0.0247 (0.002)*** (0.002)*** Abs. Dif. Ln Pysical Capital Per Worker -0.0560 0.0185 (0.025)** (0.026) Abs. Dif.
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- Ln Human Capital Per Worker -0.4265 -0.1915 (0.054)*** (0.049)*** Abs. Dif. Ln Land Per Worker -0.0450 -0.0282 (0.033) (0.029) N 7503 7503 5460 7503 7503 5460 r2 0.27 0.29 0.40 0.44 0.45 0.56 This table uses a normalized version of the F&K Similarity Index (with mean zero and unit standard deviation) as the dependent variable. Columns 1-3 estimates model (3) using the F&K Export Similarity Index with all products, while columns 4-6 uses the F&K Export Similarity Index computed with NPRB products only. All regressions include country dummies.
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- PRB Driven NPRB Driven This figure shows a bar graph, which represents the share of country pairs, within region, for which their Export Similarity Index is driven by NPRB products (red) or by PRB products (blue).The data is from year 2008. Our results are also robust to our definition of jumps: Table A10 presents results limiting the sample to those observations with a baseline RCA equal to zero (as opposed to observations with RCA below 0.1). Tables A11 and A12 redefine the left-hand side of model (4): here, jumps are defined as an increase in the RCA from RCAc,p,t ≤ 0.1 (at the beginning of the period) to RCAc,p,T ≥ 2 and to RCAc,p,T ≥ 5 (by the end of the period), respectively. As expected, given that this definition of jumps is stricter, the coefficients for the role of neighbors in the likelihood of adding a new product to the export basket becomes smaller, while still statistically significant.
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- Standard errors are clustered at the country-pair level. ∗ p < 0.10, ∗∗ p < 0.05, ∗∗∗ p < 0.01 Table A2: Correlates of the Similarity Index, using ε = 0.01 All All All NPRB NPRB NPRB Ln Simple Distance (Km) -0.4473 -0.2346 -0.2276 -0.2856 -0.1046 -0.1154 (0.014)*** (0.019)*** (0.018)*** (0.013)*** (0.017)*** (0.018)*** Share a
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- We use these two measures to show that the variation in the Export Similarity Index (Sc,c’ ) is mostly driven by the ROW Export Similarity Index. To support this statement we run a linear regression using the Export Similarity Index as the dependent variable and both decompositions as the Figure A11: The Network of Exports Similarity (Year 2008) This figure is a network representation of the Export Similarity matrix in year 2008. In the network each node represents a country. Each country has two outgoing links, which represent the two other countries most similar in terms of their export basket, as measured by our Export Similarity Index Sc,c0 . The color of the nodes represent the geographical region, as defined by the World Bank. The color of the links represent whether NPRB products are driving the similarity (red) or, otherwise, it is being driven by PRB products (blue).
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