To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ ln Kit + ß₂ ln Lit +B3FDI it + ß₁eduit + ß5RDit + ß6sizeit + ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105,242

To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ ln Kit + ß₂ ln Lit +B3FDI it + ß₁eduit + ß5RDit + ß6sizeit + ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105,242

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 5E

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