| Variable . | Definition (1) . | Observations (2) . | Mean (Median) (3) . | FDI Firms (4) . | Non-FDI Firms (5) . | p-value (6) . | Meana (Median) (7) . |
|---|---|---|---|---|---|---|---|
| Outward FDI share | Outward FDI/Total assets | 5,645 | 0.059 | 0.994 | NA | NA | NA |
| (0.059) | (0.193) | ||||||
| Cash flow | Log of cash flow | 5,645 | 2.731 | 4.276 | 2.635 | 0.000 | 4.776 |
| (2.590) | (4.439) | (2.494) | (4.708) | ||||
| Liquidity | Current assets–current liabilities/Total assets | 5,645 | 3.692 | 5.037 | 3.609 | 0.000 | 5.461 |
| (3.594) | (5.102) | (3.519) | (5.388) | ||||
| Debt ratio/Collateral | Borrowings/Total assets | 5,645 | 0.309 | 0.293 | 0.310 | 0.195 | 0.241 |
| (0.301) | (0.315) | (0.300) | (0.204) | ||||
| Capital expenditure | Capital expenditure not financed by cash | 4,137 | 0.015 | 0.028 | 0.014 | 0.0029 | 0.046 |
| flow/Total assets | (0.001) | (0.014) | (0.003) | (0.019) | |||
| Access to finance | Long-term bank credit/Total assets | 4,137 | 0.114 | 0.115 | 0.1144 | 0.951 | 0.114 |
| (0.079) | (0.074) | (0.078) | (0.063) | ||||
| Asset tangibility | Gross fixed assets/ Total assets | 5,645 | 0.631 | 0.499 | 0.639 | 0.000 | 0.468 |
| (0.586) | (0.491) | (0.597) | (0.451) | ||||
| Size | Log of total assets/ Median industry log of | 5,645 | 1.041 | 1.317 | 1.024 | 0.000 | 7.258 |
| total assets | (1.023) | (1.318) | (1.002) | (7.144) | |||
| Age | Number of years since incorporation | 5,645 | 35.420 | 35.158 | 41.780 | 0.201 | 35.930 |
| (29) | (29) | (35) | (30) | ||||
| Total factor productivity | Log of TFP/Mean industry TFP | 5,645 | 0.982 | 1.025 | 0.978 | 0.442 | 2.598 |
| (0.725) | (0.912) | (0.711) | (2.247) | ||||
| Export status | = 1 if firm exports | 5,645 | 0.825 | 0.960 | 0.816 | 0.000 | 0.955 |
| = 0 otherwise | |||||||
| Business group association | = 1 if firm is associated with a group | 5,645 | 0.386 | 0.465 | 0.381 | 0.0025 | 0.548 |
| = 0 otherwise |
| Variable . | Definition (1) . | Observations (2) . | Mean (Median) (3) . | FDI Firms (4) . | Non-FDI Firms (5) . | p-value (6) . | Meana (Median) (7) . |
|---|---|---|---|---|---|---|---|
| Outward FDI share | Outward FDI/Total assets | 5,645 | 0.059 | 0.994 | NA | NA | NA |
| (0.059) | (0.193) | ||||||
| Cash flow | Log of cash flow | 5,645 | 2.731 | 4.276 | 2.635 | 0.000 | 4.776 |
| (2.590) | (4.439) | (2.494) | (4.708) | ||||
| Liquidity | Current assets–current liabilities/Total assets | 5,645 | 3.692 | 5.037 | 3.609 | 0.000 | 5.461 |
| (3.594) | (5.102) | (3.519) | (5.388) | ||||
| Debt ratio/Collateral | Borrowings/Total assets | 5,645 | 0.309 | 0.293 | 0.310 | 0.195 | 0.241 |
| (0.301) | (0.315) | (0.300) | (0.204) | ||||
| Capital expenditure | Capital expenditure not financed by cash | 4,137 | 0.015 | 0.028 | 0.014 | 0.0029 | 0.046 |
| flow/Total assets | (0.001) | (0.014) | (0.003) | (0.019) | |||
| Access to finance | Long-term bank credit/Total assets | 4,137 | 0.114 | 0.115 | 0.1144 | 0.951 | 0.114 |
| (0.079) | (0.074) | (0.078) | (0.063) | ||||
| Asset tangibility | Gross fixed assets/ Total assets | 5,645 | 0.631 | 0.499 | 0.639 | 0.000 | 0.468 |
| (0.586) | (0.491) | (0.597) | (0.451) | ||||
| Size | Log of total assets/ Median industry log of | 5,645 | 1.041 | 1.317 | 1.024 | 0.000 | 7.258 |
| total assets | (1.023) | (1.318) | (1.002) | (7.144) | |||
| Age | Number of years since incorporation | 5,645 | 35.420 | 35.158 | 41.780 | 0.201 | 35.930 |
| (29) | (29) | (35) | (30) | ||||
| Total factor productivity | Log of TFP/Mean industry TFP | 5,645 | 0.982 | 1.025 | 0.978 | 0.442 | 2.598 |
| (0.725) | (0.912) | (0.711) | (2.247) | ||||
| Export status | = 1 if firm exports | 5,645 | 0.825 | 0.960 | 0.816 | 0.000 | 0.955 |
| = 0 otherwise | |||||||
| Business group association | = 1 if firm is associated with a group | 5,645 | 0.386 | 0.465 | 0.381 | 0.0025 | 0.548 |
| = 0 otherwise |
FDI = foreign direct investment, NA = not applicable, TFP = total factor productivity.
aColumn 7 reports the mean (median) of firms excluded from the sample.
Notes: TFP is estimated using the Levinsohn and Petrin (2003) method, which involves estimating TFP using a Cobb–Douglas form of production that includes capital stock, labor, and energy as inputs, and is measured as the ratio of firm TFP to mean industry TFP. We measure capital stock via the widely used perpetual inventory method. Since the Prowess database does not include information on labor, we calculated the labor variable using Annual Survey of Industries data and the Prowess database. Labor is constructed using data on the average wage rate from the Annual Survey of Industries and salary and wage information from the Prowess database (average wage rate = total emoluments/total persons engaged; labor = salaries and wages/average wage rate). Power and fuel expenses are used as a proxy for energy expenses. We use the revenue method since value-added information is not available.
Source: Authors’ calculations.