Table 8a Direction of trade(j=i)
|
. |
(1)a) |
(2) a) |
(3) a) |
Dependent variable : TFP_index |
(8) |
(9) |
(10) | |||
|
IiEj (i=j) |
1.041 |
0.921 |
1.013 |
0.815 |
0.449 |
0.470 |
0.781 |
3.219 |
3.017 | |
|
(IiEj)/IE (i=j) |
[0.310]*** |
[0.339]** |
[0.363]** |
[0.426]* |
[0.576] |
[0.547] |
[0.612] |
[0.587]*** |
[0.502]*** | |
|
0.274 |
0.121 |
-0.169 | ||||||||
|
[0.066]*** |
[0.101] |
[0.109] | ||||||||
|
Import share |
0.046 |
0.100 |
-0.369 | |||||||
|
[0.108] |
[0.175] |
[0.184]** | ||||||||
|
Export share |
0.064 |
0.077 |
-0.014 | |||||||
|
[0.071] |
[0.074] |
[0.088] | ||||||||
|
IE |
-0.157 |
0.039 |
-0.143 |
0.292 |
-0.170 | |||||
|
[0.190] |
[0.107] |
[0.259] |
[0.346] |
[0.252] | ||||||
|
TFP_index (t-1) |
0.770 |
0.667 |
0.722 | |||||||
|
[0.145]*** |
[0.142]*** |
[0.142]*** | ||||||||
|
Age of the firm |
0.003 |
0.003 |
0.003 |
0.003 |
0.003 |
0.001 |
0.001 |
0.001 |
0.001 |
0.001 |
|
[0.002]* |
[0.002]* |
[0.002]* |
[0.002] |
[0.002]* |
[0.001] |
[0.001] |
[0.001] |
[0.002] |
[0.002] | |
|
Sh. of pub. Own. |
0.005 |
0.005 |
0.005 |
0.004 |
0.005 |
0.000 |
0.000 |
0.000 | ||
|
[0.002]** |
[0.002]* |
[0.002]* |
[0.003] |
[0.002]* |
[0.000] |
[0.000] |
[0.000] | |||
|
Sh. of For. Own. |
1.207 |
1.196 |
1.191 |
1.167 |
1.188 |
-0.001 |
-0.101 |
0.088 |
0.928 |
0.855 |
|
[0.356]*** |
[0.376]*** |
[0.378]*** |
[0.336]*** |
[0.345]*** |
[0.742] |
[0.711] |
[0.722] |
[0.362]** |
[0.479]* | |
|
Constant |
1.284 |
1.271 |
1.266 |
1.237 |
1.260 |
-0.021 |
-0.047 |
-0.052 |
1.079 |
0.000 |
|
[0.178]*** |
[0.181]*** |
[0.182]*** |
[0.165]*** |
[0.165]*** |
[0.092] |
[0.088] |
[0.093] |
[0.104]*** |
[0.000] | |
|
Observations |
548 |
548 |
548 |
548 |
548 |
255 |
255 |
255 |
283 |
283 |
|
R-squared |
0.12 |
0.12 |
0.12 |
0.10 |
0.12 | |||||
|
AB |
Y |
Y |
Y | |||||||
|
IV |
Y | |||||||||
|
IV-GMM |
Y | |||||||||
|
AR II |
-0.84 |
-0.99 |
-0.57 | |||||||
|
(P-value) |
(0.3995) |
(0.3233) |
(0.5699) | |||||||
|
Hansen- Sargan test |
4.95 |
5.69 |
5.69 |
0.206 | ||||||
|
(P-value) |
(0.4220) |
(0.3371) |
(0.3371) |
(0.6496) | ||||||
|
Hansen J |
0.3069 | |||||||||
|
(P-value) |
(0.5796) | |||||||||
Notes:
Robust standard errors in brackets;
a) Errors are clustered at the industry-year level.
* significant at 10%; ** significant at 5%; *** significant at 1% ,
All the estimations include year sector, size and location controls.
Alternatively, the other issue of interest is tracing the flows that corresponds to contacts
with the “North”. This is to test the idea that those Indian firms that trade with developed
countries firms have contacts with the most advanced technology or have to face high
competition therefore they should exhibit a better performance level. We group the
location-specific indexes according to the fact that “North” is at least one of the
destinations or origins of trade flows. Table 8b displays the results from estimations of the
relationship between this index and productivity. Surprisingly the coefficients on the
variable of interest are in most cases not statistically significant. From table 8 there
seemed to be an advantage for those firms that imported inputs from the “North” while
there was a negative correlation between the share of output sold to this destination and
the level of efficiency. The results from table 10b seem to combine these two outcomes.
25