Online Appendices for The Economics of Nationalism (Xiaohuan Lan and Ben Li)

Size: px

Start display at page:

Download "Online Appendices for The Economics of Nationalism (Xiaohuan Lan and Ben Li)"

Nicholas Robinson
5 years ago
Views:

1 Onine Appendices for The Economics of Nationaism Xiaohuan Lan and Ben Li) A. Derivation of inequaities 9) and 10) Consider Home without oss of generaity. Denote gobaized and ungobaized by g and ng, respectivey. The saes by an ungobaized region in Home Hng) to a gobaized Home region Hg), to another ungobaized Home region Hng), to a gobaized Foreign region Fg), and to an ungobaized Foreign region Fng) stay the same as before, namey, X Hg,Hng = X Hng,Hng = X Fg,Hng = X Fng,Hng = S H + S F θ, S H + S F θ, θ S H + S F θ, θ S H + S F θ. In comparison, the saes of a gobaized region in Home to the four destinations are X Hg,Hg = X Hng,Hg = X Fg,Hg = X Fng,Hg = S H + S F [κ θ + 1 κ)θ] < X Hg,Hng, S H + S F [κ θ + 1 κ)θ] < X Hng,Hng, θ S H + S F [κ θ + 1 κ)θ] > X Fg,Hng, θ S H + S F [κ θ + 1 κ)θ] < X Fng,Hng. 43

2 B. Derivations of equation 11) The output of an ungobaized region is ) α ) α Y ng = κs H S H + S F [κ θ + 1 κ)s H, + 1 κ)θ] S H + S F θ ) α ) α +κs F θ S F + S H [κ θ + 1 κ)s F θ, + 1 κ)θ] S F + S H θ whie the output of a gobaized region is ) α ) α Y g = κs H S H + S F [κ θ + 1 κ)s H + 1 κ)θ] S H + S F θ ) α ) α +κs F θ S F + S H [κ θ + 1 κ)s F θ. + 1 κ)θ] S F + S H θ The difference between Y ng and Y g is the third term on their right sides. C. Gravity in our setup and gravity-based economic openness Beow, we first derive a gravity equation from our mode in Section I, and then derive EconOpen from the gravity equation. 1. Gravity equation derived from our mode For the moment, ignore the h part in equation 7) and focus on the utiity from consumption. With C = Y inserted, the utiity function can be considered as one with constant easticity of substitution. A gravity equation refers to the fact that, without oss of generaity, exports from a Home region i to a Foreign region k equas X k,i = k i θ k,i i k ). 15) Notice that refers to the vaue, rather than quantity, of tradabes in region. By 44

3 equations 4)-5), we have X k,i = θ k,i i i ; thus, deriving equation 15) is equivaent to proving k = k. 16) Define s k k /. Proving 16) is now equivaent to proving s k = k. We now prove s k = k by demonstrating that it hods if and ony if region k s accounting identity baance of payment) hods. The vaue of region k s exported tradabe is θ,k k k = θ,k k k s = θ,k k k. = θ,k s k k = θ,k. Reca that θ k is symmetric between and k. θ k, Therefore, the above θ,k = = k, which equas the vaue of region k s imported tradabes. The identity is estabished. Since every step is reversibe, the if and ony if reation is aso estabished. This finishes the proof. It is noteworthy that the export- and import-side mutiatera resistance terms in equation 15) correspond to their import- and export-side counterparts in the gravity equation of Anderson and van Wincoop 2003). This is because the substitution among varieties in their paper occurs on the import-side, whie our mode, foowing Aesina et a., 2000) ets the substitution occur on the export-side. This difference is ony a matter of interpretation, as the gravity equation is symmetric. 2. Derivation of EconOpen from the gravity equation According to the above gravity equation 15), EconOpen i IM i+ex i Y i equas k X k,i + k X i,k Y i ) = 2 Y i k i θ k,i. 17) k F i k 45

4 With equation 16) inserted, we obtain EconOpen i = 2 Y i k F ) θ k,i i i = 2 k F ) θ k,i. i This is the same as the EconOpen i derived in text through equation 13). D. Cross-region nationaism average and the intensity of gobaization Since osses from decreased domestic trade are equa between gobaized and ungobaized regions, the nationaism of gobaized regions reative to ungobaized regions is decreasing in their reative gain from increased foreign trade: S F θ Sθ S F +S H [κ θ+1 κ)θ] S F +S H [κ θ+1 κ)θ] ) α SF θ ) α S H +S F θ ) α ) α > 1. 18) SF θ S H +S F θ The numerator and denominator in expression 18) correspond to gobaized and ungobaized regions, respectivey. In either of them, the first second) term is inked to the post-pre-) gobaization period. Since θ > θ, the ratio is greater than 1. Ceary, if gobaization is more intense, the ratio wi be even greater than 1, as the numerator increases but the denominator stays the same. This wi reduce the weighted average of region-eve nationaism in the country. 46

A coordinates are within range [-2,2]. E. A Sampe Report from the CPoC Your Evauation Resuts: Poitica Coordinate: 0.1; Cutura Coordinate: -0.4; Economic Coordinate: 0.

5 A coordinates are within range [-2,2]. E. A Sampe Report from the CPoC Your Evauation Resuts: Poitica Coordinate: 0.1; Cutura Coordinate: -0.4; Economic Coordinate: 0.1 Poitica Coordinate: authoritarianism vs. ibertarianism positive vaue refers to ibertarianism, zero means neutra) Cutura Coordinate: conservatism vs. iberaism positive vaue refers to iberaism, zero means neutra) Economic Coordinate: coectivism vs. neoiberaism positive vaue refers to neoiberaism, zero means neutra) Notes: The above sampe report indicates that this participant eans towards ibertarianism sighty), conservatism moderatey), and neoiberaism sighty). The CPoC aso provides the foowing histograms of evauation resuts from a participants, for the convenience of sef-evauation. Poitica Economic Cutura 47

6 Figure A1: Nationaism, the CPoC index versus the WVS index WVS Nationaism Index of CPoC Nationaism Index of 2009 Correation Coefficient=0.699 Note: To make the two indices comparabe, both the WVS index and the CPoC index are averaged to the province eve. 48

7 Tabe A1: Principa Component Anaysis of the CPoC and the WVS Responses Pane A: The CPoC Responses to [N1]-[N4] Number of Observations =54,602 Principa Component Factors Factor Loading 1) 2) 3) 4) Eigenvaue %) tota variance Factor 1 %) Uniqueness Factor N Factor N Factor N Factor N Pane B: The WVS Responses to [N1 ]-[N3 ] Number of Observations =2,038 Principa Component Factors Factor Loading 1) 2) 3) 4) Eigenvaue %) tota variance Factor 1 %) Uniqueness Factor N Factor N Factor N Notes: The principa component anaysis pinpoints the atent information dimensions of mutipe variabes here, ratings of mutipe statements reated to nationaism) by decomposing the covariance matrix of the variabes. Take Pane A for exampe. The four variabes, responses to [N1]-[N4], are transformed into four orthogona and normaized factors Factors 1-4) using a transformation matrix. The transformation matrix is specified to ensure that i) Factor k accounts for the k-th maximum of the variance in the covariance matrix; and ii) each factor is scaed such that its variance equas to the share of the tota variance in the variabes i.e., coumn 2)). It consists of the normaized eigenvectors of the correation matrix the corresponding eigenvaues are reported in coumn 1)). Simpy put, the eigenvaue of factor k refects the variance in a the four variabes that is accounted for by factor k. Factors with an eigenvaue smaer than one is dropped the aiser criterion). Coumn 1) in Pane A suggests that ony one dimension of information, or one index, can be singed out of the four variabes. Coumn 3) reports the correation coefficients between the singed out factor Factor 1) and the four ratings, and coumn 4) reports the variation in a given statement rating that cannot be expained by the common Factor 1. In this case, each rating has unique variations. In summary, Pane A reveas that there is ony one common factor shared by the four ratings, though each of the four contains additiona information. Pane B on the three WVS ratings can be interpreted in the same fashion, which reaches a simiar concusion as Pane A. 49

8 Tabe A2: Profies of Chinese Internet Users and the Genera Popuation 2010) Internet Users Genera Popuation Popuation miion) Gender Ratio femae=100) Urban Residents %) Age Distribution %) Age Age Age Age Education Distribution %) Eementary schoo and beow Midde schoo High schoo Coege and above Source: Data on internet users are from the Statistica Survey Report on Internet Deveopment in China China Internet Network Information Center, 2010). Data on genera popuation are from the China Statistica Yearbook 2010 NBSC, 2010). 50

9 Tabe A3: Sampe Seection and Nationaism across Cities VARIABLES 1) 2) 3) 4) 5) The nationaism index ) 0.563) 0.586) 0.561) 0.549) og GDP per capita, GDPPC) ) 0.099) 0.097) Share of rura popuation *** ** ** 0.135) 0.219) 0.216) Constant ) 1.129) 1.645) 0.758) 0.748) Observations Robust standard errors in parentheses. *** p<0.01, ** p<0.05. Notes: The dependent variabe in coumns 1)-4) is number of the CPoC participants in the city)/number of internet accounts in the city). Considering that some peope may use dia-up andines or mobie phones to access the internet, the dependent variabe in coumn 5) is number of CPoC participants in the city)/number of internet accounts+number of andines and mobie phones in the city). Source: Chinese Poitica Compass and China Data Center. 51

10 Tabe A4: Using Standard Deviation of Nationaism as Dependent Variabe 1) 2) 3) OLS 2SLS 2SLS EconOpen * ) 0.111) 0.118) Instrumenta variabe NA MP1 MP2 Robust standard errors in parentheses. *p<0.1. Notes: The dependent variabe is the standard deviation of the individua-eve nationaism index in each Chinese city see Section 4.2 for detais). EconOpen is the measure of economic openness, constructed using exports+imports)/gdp. The specifications in this tabe are the same as that in coumn 4) of Tabe 4. The number of observations is 200 in a regressions. Source: Chinese Poitica Compass, China Data Center, Penn Word Tabe, and China Customs Statistics Information Service. 52

11 Tabe A5: Locaism reative to Gobaism and Economic Openness across 43 Countries year 2007) ocaism reative to gobaism EconOpen 0.422*** 0.127) oggdp per capita) ) Age 0.004*** 0.001) Femae ) Marita status married at east once=1) 0.076*** 0.027) Education and Income dummies YES Observations 47,575 Standard errors in parentheses, custered at country eve. *** p<0.01. Notes: Gobaism is the response to the statement I see mysef as a word citizen, and ocaism is the response to the statement I see mysef as member of my oca community. Survey participants rate the two statements with strongy agree, agree, disagree, and strongy disagree, respectivey coded as 4, 3, 2, 1. Locaism reative to gobaism is measured by ocaism minus gobaism. A higher vaue of this reative term suggests a higher ocaism reative to gobaism. Education has three eves, ow, midde and high, measured by two dummies. Income has ten eves, measured by nine dummies. Source: Word Vaue Survey and Penn Word Tabe. 53

Alberto Maydeu Olivares Instituto de Empresa Marketing Dept. C/Maria de Molina Madrid Spain

Alberto Maydeu Olivares Instituto de Empresa Marketing Dept. C/Maria de Molina Madrid Spain CORRECTIONS TO CLASSICAL PROCEDURES FOR ESTIMATING THURSTONE S CASE V MODEL FOR RANKING DATA Aberto Maydeu Oivares Instituto de Empresa Marketing Dept. C/Maria de Moina -5 28006 Madrid Spain Aberto.Maydeu@ie.edu