These are in line with the previous literature about the link between physical capital and R&D on the one side and productivity on the other side: Physical capital appears to have a positive and highly significant impact on productivity with an elasticity ranging from 0.131 to 0.452; at the same time also knowledge capital shows a positive and highly significant impact ranging from 0.037 to 0.098. 10 As expected, our trade control participates to increase labor productivity with a highly significant coefficient in the preferred FE estimation.
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