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



Table D: CONDITIONAL FIXED EFFECTS LOGIT

Industry Switching Firm Exit

(1)

(2)

(3)

(4)

(5)

(6)

Firm specific variables

Relative efficiency (weighted)

-75.4019**

-86.7263**

-105.9120**

-146.5913**

-137.6718**

-134.8633**

(2.06)

(2.26)

(2.61)

(2.18)

(2.08)

(2.05)

Firm size (log)

0.1710

0.2075

-0.1325

-0.1514

(1.37)

(1.61)

(1.22)

(1.38)

State owned enterprise (SOE)

1.5040

1.5396

0.6695

0.6702

(1.19)

(1.13)

(0.89)

(0.89)

Sector dummies____________

No

No

Yes

No

No

Yes

Observations

1,787

1,787

1,787

2,558

2,558

2,558

Groups

695

695

695

1,072

1,072

1,072

Log Likelihood

-640.18

-638.55

-627.17

-907.92

-906.76

-894.06

LR (p-value)________________

0.02

0.04

0.07

0.01

0.04

0.01

Note: Dependent variable: Sector switching (SW2) or firm exit (EXIT). Conditional fixed effects logit estimates. t-values reported in
parenthesis. *, **, *** indicate significance at a 10%, 5% and 1% level, respectively. The total number of sector switchers and exits are
773 and 1,072 in the unbalanced panel, respectively.

46



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