Sector Switching: An Unexplored Dimension of Firm Dynamics in Developing Countries



Table 9: SECTOR SWITCHING AND EXIT DETERMINANTS - FIRM SPECIFIC EXPLANATIONS

Sector Switching (SW2)

_________Firm Exit (EXIT)_________

(1)

(2)

(3)

(4)

(5)

(6)

Firm specific variables

Relative efficiency (weighted)

-43.7414***

-15.1230**

-9.7153

-45.7931***

-22.2958***

-17.5795***

(6.22)

(2.34)

(1.55)

(6.08)

(3.11)

(2.55)

Firm size (log)

-0.1257***

-0.0843***

-0.1592***

-0.1869***

(7.05)

(4.46)

(7.16)

(7.91)

Firm age (log)

-0.1782***

-0.1182***

0.1367***

0.0218

(4.71)

(2.98)

(3.54)

(0.61)

State owned enterprise (SOE)

-0.5335***

0.5090***

(5.42)

(6.62)

Foreign owned firm (Multinational)

-0.2285***

-0.4127***

(2.99)

(4.70)

Provincial dummies

Yes

Yes

Yes

Yes

Yes

Yes

Sector dummies_________________

Yes

Yes

Yes

Yes

Yes

Yes

Observations

24,363

24,363

24,363

24,363

24,363

24,363

Groups

10,570

10,570

10,570

10,570

10,570

10,570

Log Likelihood

-3872.61

-3827.66

-3809.49

-6572.56

-6519.94

-6464.44

Wald (chi-sq)

683.53

743.80

757.50

161.81

173.56

202.38

Likelihood ratio test (p-value)______

0.00

0.00

0.00

0.01

0.00

0.00

Note: Dependent variable: Sector switching (SW2) and exit (EXIT). Random effects probit estimation. All estimations included a constant
term and time dummies. t-values reported in parenthesis. *, **, *** indicate significance at a 10%, 5% and 1% level, respectively. Base: Food
processing and HCMC. The total number of sector switchers and exits are 1,076 and 1,937 in the unbalanced panel, respectively.

39



More intriguing information

1. The geography of collaborative knowledge production: entropy techniques and results for the European Union
2. AN IMPROVED 2D OPTICAL FLOW SENSOR FOR MOTION SEGMENTATION
3. Labour Market Institutions and the Personal Distribution of Income in the OECD
4. Evidence-Based Professional Development of Science Teachers in Two Countries
5. Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force
6. CHANGING PRICES, CHANGING CIGARETTE CONSUMPTION
7. Novelty and Reinforcement Learning in the Value System of Developmental Robots
8. AN EXPLORATION OF THE NEED FOR AND COST OF SELECTED TRADE FACILITATION MEASURES IN ASIA AND THE PACIFIC IN THE CONTEXT OF THE WTO NEGOTIATIONS
9. Imitation in location choice
10. The voluntary welfare associations in Germany: An overview