This paper extends the transformed maximum likelihood approach for estimation of dynamic panel data models by Hsiao, Pesaran, and Tahmiscioglu (2002) to the case where the errors are cross-sectionally heteroskedastic. This extension is not trivial due to the incidental parameters problem and its implications for estimation and inference. We approach the problem by working with a mis-speci…ed ho...

This paper focuses on two major aspects of globalization: international trade and FDI and their impacts on manufacturing employment in Iran and study whether foreign direct investment and trade expansion with Asian and European partner played any role in shaping the Iranian manufacturing employment structure. This study incorporates globalization (KOF index), trade integration and FDI into a si...

this paper analyses the impact of sanctions against iran in addition to other country-specific determinants on intra-industry trade between iran and shanghai cooperation organization (sco) countries over the period 1997-2013. by disentangling total intra-industry trade (iit) into horizontal and vertical iit and after investigating bilateral trade pattern between iran and sco countries, determin...

Using a model of vertical product differentiation, we show under what institutional circumstances welfare gains will be maximized as economies integrate and harmonize labeling and certification policies for credence goods. Specifically, we show that harmonized mandatory, exclusive discrete labeling will not maximize the gains from economic integration, i.e., the choice of labeling regime can ha...

This paper examines the impact of globalization on income inequality in a panel of 78 developed and developing countries over 2002–2015. Moreover, the indirect effect of financial development in the link between globalization and income inequality is also analyzed by incorporating the interaction term between globalization and financial development. The empirical evidence based on the first-dif...

Innovation plays a crucial role in improving firm's performance. The relationship between innovation and productivity has been widely analysed during this decade across countries industries, generating important new findings. This study aims to provide an overall literature review on the of firms obtain comprehensive overview changing productivity. By reviewing existing empirical evidence, one ...

The paper develops the …xed-smoothing asymptotics in a two-step GMM framework. Under this type of asymptotics, the weighting matrix in the second-step GMM criterion function converges weakly to a random matrix and the two-step GMM estimator is asymptotically mixed normal. Nevertheless, the Wald statistic, the GMM criterion function statistic and the LM statistic remain asymptotically pivotal. I...

To obtain consistency and asymptotic normality, a generalized method of moments (GMM) estimator typically is defined to be an approximate global minimizer of a GMM criterion function. To compute such an estimator, however, can be problematic because of the difficulty of global optimization. In consequence, practitioners usually ignore the problem and take the GMM estimator to be the result of a...

This paper investigates the behavior of the first-difference GMM estimator for dynamic panel data models when persistency of data is (moderately) strong and initial conditions are unrestricted. We show that initial conditions affect the rate of convergence of the GMM estimator under a local to unity system where autoregressive parameter is modeled as αN = 1− c/Np where N is the cross-sectional ...

This paper analyzes the higher order asymptotic properties of Generalized Method of Moments (GMM) estimators for linear time series models using many lags as instruments. A data dependent moment selection method based on minimizing the approximate mean squared error is developed. In addition, a new version of the GMM estimator based on kernel weighted moment conditions is proposed. It is shown ...