Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74534
Authors: 
Hübler, Michael
Glas, Alexander
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-031
Abstract: 
We examine variations in the South-North ratios (emerging vs. industrialized countries) of energy and labor intensities driven by imports. We use the novel World Input-Output Database (WIOD) that provides bilateral and bisectoral data for 40 countries and 35 sectors for 1995-2009. We find South-North convergence of energy and labor intensities, an energy bias of import-driven convergence and no robust difference between imports of intermediate and investment goods. Accordingly, trade helps emerging economies follow a 'green growth' path, and trade-related policies can enhance this path. However, the effects are economically small and require a long time horizon to become effective. Trade-related policies can become much more effective in selected countries and sectors: China attenuates labor intensity via imports of intermediate goods above average. Brazil reduces energy intensity via imports of intermediate and investment goods above average. Production of machinery as an importing sector in emerging countries can immoderately benefit from trade-related reductions in factor intensities. Electrical equipment as a traded good particularly decreases energy intensity. Machinery particularly dilutes labor intensity. Our main results are statistically highly significant and robust across specifications.
Subjects: 
Energy intensity
labor intensity
trade
technology diffusion
convergence
developing countries
JEL: 
C23
F18
F21
O13
O33
O47
Q43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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