Business Networks and Performance: A Spatial Approach



Table 1. Definitions and descriptive statistics of dependent and independent variables.

Variable Name

Definition

Mean
(S.D)

Dependent
Variables

PMIR

Percentage of material inputs produced from local firms

47.65

(41.87)

PSE

Percentage of production exported

25.61

(32.03)

PEREMP

Dummy variable, 0= Firm reports negative or no change in
employment, 1=Firm reports positive change

0.29

(0.45)

PERPM

Dummy variable, 0= Firm reports negative or no change in
profit margins, 1=Firm reports positive change

0.52

(0.50)

PERTS

Dummy variable, 0= Firm reports negative or no change in
total sales, 1=Firm reports positive change

0.53

(0.50)

PERINV

Dummy variable, 0= Firm reports negative or no change in
investments, 1=Firm reports positive change

0.36

(0.48)

Independent

Variables

NETINPUT

Dummy variable, 1=Firm accesses horizontal networks for
inputs, 0=Firm does not have access to horizontal networks,
i.e, it accesses vertical networks or exercises spot trade for
inputs

0.43

(0.50)

NETSALES

Dummy variable, 1= Firm does not have access to vertical
networks for output, i.e, it accesses horizontal networks or
exercises spot trade for output, 0=Firm accesses vertical
networks for output,

0.59

(0.49)

NETFINAN

Dummy variable, 1=Firm accesses horizontal networks for
finance, 0=Firm accesses vertical networks or exercises
spot agreements for finance

0.49

(0.51)

... table 1 continued on next page

16



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