I want to replicate the econometrics analysis from the paper by Autor, Dorn and Hanson (2013): The China Syndrome: Local Labor Market Effects of Import Competition in the United States http://economics.mit.edu/files/7723
Specifically, to identify the causal effect of Chinese imports exposure on US manufacturing employment they employ and an instrumental variable strategy that accounts for the potential endogeneity of US trade exposure. They develop and instrument with which they measure import exposure with a non-US exposure variable, constructed using data on contemporaneous industry level growth of chinese exports to other high income markets (i.e. CHANGE IN IMPORT FROM 8 ADVANCED COUNTRIES).
I need to find another instrumental variable that accounts for the same endogeneity problem (reverse causality). Anyone of you has an idea? What can be another IV? I thought about CHINESE PRODUCTIVITY GDP PER WORKER, or, TARIFFS AND TRADE LIBERALISATION.
Thank you guys
here you can find the data ttps://www.aeaweb.org/articles?id=10.1257/aer.103.6.2121 In the zip file 20111050 data.zip you will and many do files and datasets. The main dataset is workfile_china.dta.
main do file: czone_analysis_ipw_final.do.