Appendix 1: 
Recent Studies on Survival Effects of FDI
CovariatesControls for
AuthorsCountriesModels(Firm Variables)EndogeneityDataResults
Wang (2010)  Canada AFT FDI, Export, Import, Entry rate, Industry dummies, Cohort dummies (Size, Ownership dummy, Multi-plant dummy) No Manufacturing 1973–1996 (–) Horizontal (+) Backward (+) Forward 
Ferragina, Pittiglio, and Reganati (2009)  Italy Cox Herfindahl, MES, FDI (Size, Age, Relative labor productivity, Ownership dummy) No Manufacturing and services 2005–2007 (+) Services, (?) Manufacturing 
Iurchenko (2009)  Ukraine Cox FDI, Export, Concentration, Region dummies, Sector dummies, Time dummies (Size, Capital intensity, Wages, Number of subsidiaries, Profitability) Lag(1) for Herfindahl Manufacturing 2001–2007 + 
Bandick and Görg (2010) Sweden Cloglog Industry dummies, Time dummies (Ownership, Size, Age, Multi-plant dummies, R&D intensity, Exports) Scoring propensity and IVs Manufacturing 1993–2002 +/? 
Kosova (2010)  Czech Lognormal FDI, Reform dummies, Industry dummies, Region dummies (Foreign capital share, Sales growth, Age, Size, Intangible assets, Technology gap, Solvency) Dummies for time, region, sector 1994–2001 (–) Short term 
Burke, Görg, and Hanley (2008)  UK Cox FDI, Concentration, Sectoral growth (Size) No Manufacturing 1997–2002 (+) Overall (–) Dynamic and (+) Static industries 
Taymaz and Özler (2007)  Turkey Cox FDI, Entry rate, Growth, Prices, Imports, Exports, Herfindahl, MES, Time dummies, Industry dummies (Size, Employment growth, K/L, Advertising, Contracted input share, Contracted output share, Interest payments, Profit margin, Bonuses) No Manufacturing 1983–2001 (?) 
Louri, Peppas, and Tsionas (2006)  Greece Weibull, Cox, Exponential FDI, Herfindahl (Inefficiency, Ownership, Age, K/L, Total assets, Leverage, Liquidity, Profit, Debt) No Manufacturing 1997–2003 (–) 
Görg and Strobl (2003b)  Ireland Cox FDI, MES, Herfindahl, Employment growth (Size, Tech level, Age, Foreign dummy) Sectoral dummies Manufacturing 1973–1996 (+) All (+) High tech (–) Low tech 
Backer and Sleuwaegen (2003)  Belgium System (OLS) equation Imports, Foreign entry, Foreign exit (Price cost margin, Sales growth) No Manufacturing (–) Short run, (+) Long run 
Alvarez and Görg (2005)  Chile Probit FDI, MES, Herfindahl (Size, Age, Productivity, Export dummy, Foreign dummy) No Manufacturing 1990–2000 (+) With productivity improvement 
Girma and Görg (2003)  UK Cox Industry growth, Herfindahl, Region dummies (Age, Size, Ownership, Age at acquisition) IV method Electronic and Food industries 1980–1993 (−) Electronics (?) Food 
Mata and Portugal (2002)  Portugal Exponential Hazard FDI, MES, Employment growth, Entry rate, Concentration, Industry growth (Labor quality, Size, Ownership form) No All firms 1983–1991 (?) 
Dries and Swinnen (2004)  Poland Probit (FDI dummy, Vertical links, Size, Age, Education, Household characteristics) Yes Dairy farm data (1996–2000) (+) Backward effect 
CovariatesControls for
AuthorsCountriesModels(Firm Variables)EndogeneityDataResults
Wang (2010)  Canada AFT FDI, Export, Import, Entry rate, Industry dummies, Cohort dummies (Size, Ownership dummy, Multi-plant dummy) No Manufacturing 1973–1996 (–) Horizontal (+) Backward (+) Forward 
Ferragina, Pittiglio, and Reganati (2009)  Italy Cox Herfindahl, MES, FDI (Size, Age, Relative labor productivity, Ownership dummy) No Manufacturing and services 2005–2007 (+) Services, (?) Manufacturing 
Iurchenko (2009)  Ukraine Cox FDI, Export, Concentration, Region dummies, Sector dummies, Time dummies (Size, Capital intensity, Wages, Number of subsidiaries, Profitability) Lag(1) for Herfindahl Manufacturing 2001–2007 + 
Bandick and Görg (2010) Sweden Cloglog Industry dummies, Time dummies (Ownership, Size, Age, Multi-plant dummies, R&D intensity, Exports) Scoring propensity and IVs Manufacturing 1993–2002 +/? 
Kosova (2010)  Czech Lognormal FDI, Reform dummies, Industry dummies, Region dummies (Foreign capital share, Sales growth, Age, Size, Intangible assets, Technology gap, Solvency) Dummies for time, region, sector 1994–2001 (–) Short term 
Burke, Görg, and Hanley (2008)  UK Cox FDI, Concentration, Sectoral growth (Size) No Manufacturing 1997–2002 (+) Overall (–) Dynamic and (+) Static industries 
Taymaz and Özler (2007)  Turkey Cox FDI, Entry rate, Growth, Prices, Imports, Exports, Herfindahl, MES, Time dummies, Industry dummies (Size, Employment growth, K/L, Advertising, Contracted input share, Contracted output share, Interest payments, Profit margin, Bonuses) No Manufacturing 1983–2001 (?) 
Louri, Peppas, and Tsionas (2006)  Greece Weibull, Cox, Exponential FDI, Herfindahl (Inefficiency, Ownership, Age, K/L, Total assets, Leverage, Liquidity, Profit, Debt) No Manufacturing 1997–2003 (–) 
Görg and Strobl (2003b)  Ireland Cox FDI, MES, Herfindahl, Employment growth (Size, Tech level, Age, Foreign dummy) Sectoral dummies Manufacturing 1973–1996 (+) All (+) High tech (–) Low tech 
Backer and Sleuwaegen (2003)  Belgium System (OLS) equation Imports, Foreign entry, Foreign exit (Price cost margin, Sales growth) No Manufacturing (–) Short run, (+) Long run 
Alvarez and Görg (2005)  Chile Probit FDI, MES, Herfindahl (Size, Age, Productivity, Export dummy, Foreign dummy) No Manufacturing 1990–2000 (+) With productivity improvement 
Girma and Görg (2003)  UK Cox Industry growth, Herfindahl, Region dummies (Age, Size, Ownership, Age at acquisition) IV method Electronic and Food industries 1980–1993 (−) Electronics (?) Food 
Mata and Portugal (2002)  Portugal Exponential Hazard FDI, MES, Employment growth, Entry rate, Concentration, Industry growth (Labor quality, Size, Ownership form) No All firms 1983–1991 (?) 
Dries and Swinnen (2004)  Poland Probit (FDI dummy, Vertical links, Size, Age, Education, Household characteristics) Yes Dairy farm data (1996–2000) (+) Backward effect 

AFT = accelerated failure time model, FDI = foreign direct investment, K/L = capital/labor, MES = minimum efficient scale, R&D = research and development, UK = United Kingdom.

Source: Authors’ summary of the literature.

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Appendix 2: 
Survival Probabilities of Domestic Firms (%)
YearOECDaUSbUKcUKdTurkeyeViet Nam
 1 – 93 99.2 75 83 87 
 2 – – 86.0 – 78 79 
 3 71 – 76.0 – 69 73 
 4 – – 69.7 55 60 66 
 5 – 67 – – – 50 
10 – 54 – – 40 – 
YearOECDaUSbUKcUKdTurkeyeViet Nam
 1 – 93 99.2 75 83 87 
 2 – – 86.0 – 78 79 
 3 71 – 76.0 – 69 73 
 4 – – 69.7 55 60 66 
 5 – 67 – – – 50 
10 – 54 – – 40 – 

– = not available, OECD = Organisation for Economic Co-operation and Development, UK = United Kingdom, US = United States.

aOECD. 2011. Entry, Exit, and Survival. In OECD Science, Technology and Industry Scoreboard 2011. Paris: OECD Publishing; average for firms in the cohort 2004.

bAgarwal, Rajshree, and David Audretsch. 2001. Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival. Journal of Industrial Economics 49(1): 21–43; for US in period 1906–1990.

cHelmers and Rogers (2010); for UK in the period 2001–2006.

dSaridakis, George, Kevin Mole, and David Storey. 2008. New Small Firm Survival in England. Empirica 35(1): 25–39; for small sample survey in 1996–2001.

eTaymaz, Erol, and Sule Özler. 2007. Foreign Ownership, Competition, and Survival Dynamics. Review of Industrial Organization 31(1): 23–42; for the case of Turkey for the period 1983–2001.

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Appendix 3: 
Correlation Matrix for Variables Used in the Model (simple correlations)
123456789101112131415161718
1 HFDI 1.000                  
2 UpFDI –0.471 1.000                 
3 DownFDI –0.366 0.392 1.000                
4 HSOE 0.385 0.048 –0.150 1.000               
5 UpSOE –0.392 0.355 0.281 –0.138 1.000              
6 DownSOE –0.185 0.457 0.331 –0.015 0.307 1.000             
7 GFDI –0.144 0.106 0.041 –0.057 0.043 0.015 1.000            
8 GSOE –0.213 0.228 0.165 0.008 0.090 0.088 0.289 1.000           
9 EXPORT 0.258 –0.051 –0.032 0.074 –0.185 0.020 –0.044 –0.060 1.000          
10 IMPORT 0.450 –0.338 –0.216 0.060 –0.274 –0.080 –0.140 –0.106 0.651 1.000         
11 EXPRATIO 0.528 –0.531 –0.206 0.012 –0.373 0.036 –0.120 –0.264 0.012 0.299 1.000        
12 HERF 0.213 –0.171 –0.253 –0.172 –0.170 0.015 –0.024 –0.048 0.073 0.160 0.191 1.000       
13 NBR 0.181 –0.124 –0.096 0.017 –0.107 –0.050 0.073 0.036 0.041 0.097 0.138 0.114 1.000      
14 DIVER –0.045 0.006 0.034 –0.041 –0.051 0.018 –0.142 –0.042 0.025 0.046 –0.001 0.079 –0.507 1.000     
15 MSCALE 0.411 –0.271 –0.071 0.054 –0.258 –0.195 –0.159 –0.091 0.096 0.291 0.314 0.096 0.088 0.106 1.000    
16 RELSIZE –0.130 0.068 0.028 –0.107 0.104 0.028 0.069 0.014 0.020 –0.037 –0.130 –0.012 0.072 0.133 –0.251 1.000   
17 CAPINT –0.003 0.038 0.007 –0.014 0.012 0.060 0.012 0.039 0.024 –0.005 –0.018 0.059 0.090 –0.007 –0.058 0.075 1.000  
18 AGE 0.063 –0.028 –0.025 –0.014 –0.073 0.015 –0.013 –0.060 0.256 0.264 0.040 0.028 0.011 0.055 0.025 0.157 0.013 1.000 
19 ENTRY –0.295 0.282 0.318 –0.026 0.347 0.223 0.171 0.185 –0.122 –0.240 –0.244 –0.179 –0.012 –0.112 –0.146 0.091 0.026 –0.107 
123456789101112131415161718
1 HFDI 1.000                  
2 UpFDI –0.471 1.000                 
3 DownFDI –0.366 0.392 1.000                
4 HSOE 0.385 0.048 –0.150 1.000               
5 UpSOE –0.392 0.355 0.281 –0.138 1.000              
6 DownSOE –0.185 0.457 0.331 –0.015 0.307 1.000             
7 GFDI –0.144 0.106 0.041 –0.057 0.043 0.015 1.000            
8 GSOE –0.213 0.228 0.165 0.008 0.090 0.088 0.289 1.000           
9 EXPORT 0.258 –0.051 –0.032 0.074 –0.185 0.020 –0.044 –0.060 1.000          
10 IMPORT 0.450 –0.338 –0.216 0.060 –0.274 –0.080 –0.140 –0.106 0.651 1.000         
11 EXPRATIO 0.528 –0.531 –0.206 0.012 –0.373 0.036 –0.120 –0.264 0.012 0.299 1.000        
12 HERF 0.213 –0.171 –0.253 –0.172 –0.170 0.015 –0.024 –0.048 0.073 0.160 0.191 1.000       
13 NBR 0.181 –0.124 –0.096 0.017 –0.107 –0.050 0.073 0.036 0.041 0.097 0.138 0.114 1.000      
14 DIVER –0.045 0.006 0.034 –0.041 –0.051 0.018 –0.142 –0.042 0.025 0.046 –0.001 0.079 –0.507 1.000     
15 MSCALE 0.411 –0.271 –0.071 0.054 –0.258 –0.195 –0.159 –0.091 0.096 0.291 0.314 0.096 0.088 0.106 1.000    
16 RELSIZE –0.130 0.068 0.028 –0.107 0.104 0.028 0.069 0.014 0.020 –0.037 –0.130 –0.012 0.072 0.133 –0.251 1.000   
17 CAPINT –0.003 0.038 0.007 –0.014 0.012 0.060 0.012 0.039 0.024 –0.005 –0.018 0.059 0.090 –0.007 –0.058 0.075 1.000  
18 AGE 0.063 –0.028 –0.025 –0.014 –0.073 0.015 –0.013 –0.060 0.256 0.264 0.040 0.028 0.011 0.055 0.025 0.157 0.013 1.000 
19 ENTRY –0.295 0.282 0.318 –0.026 0.347 0.223 0.171 0.185 –0.122 –0.240 –0.244 –0.179 –0.012 –0.112 –0.146 0.091 0.026 –0.107 

Source: Authors’ computations.

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