Trust and Specialization: Evidence from U.S. States - José De Sousa

We plot the cumulative distribution function of the 2007 output of the 10% least complex and the 10% most complex industries by U. [...] Second, we discuss the possibility of a composition issue in the export destination of different regions and verify that our results hold regardless of the country of destination. [...] states over the period of 2003-2012.9 The OLS estimates of the trust interaction in columns 3 and 4 are positive, significant, and in the same order of magnitude as the production estimates. [...] As expected, the coefficient of the added interaction variable is positive but marginally significant.15 Despite this addition, the 14See Table 8 in the Appendix A.4 for a description of the variables and how they are constructed. [...] 5.2 Extensive Margin The results presented to this point have shown the trust impact on the intensive margin of specialization, that is, the interaction effect of trust on the volume of production or the value of exports.