Business Networks and Performance: A Spatial Approach

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)