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Table 4. 
Financing Constraints and Determinants of Number of Foreign Affiliates
VariablePoisson (1)Negative Binomial (2)Zero-Inflated Model (3)Poisson (4)Negative Binomial (5)Zero-Inflated Model (6)Zero-Inflated Model (7)Zero-Inflated Model (8)
Cash flowt−1 0.674*** 0.687*** 0.390***    0.357**  
 (0.0678) (0.0861) (0.120)    (0.149)  
Liquidityt−1    0.595*** 0.770*** 0.197  0.362** 
    (0.0996) (0.136) (0.156)  (0.162) 
Debt ratiot−1 0.525*** 0.506** 0.554** −0.250 −0.462 −0.295 −0.0383 −0.303 
 (0.136) (0.224) (0.280) (0.279) (0.372) (0.364) (0.400) (0.400) 
Capext−1       −1.097** −1.414*** 
       (0.548) (0.543) 
Long-term borrowingst−1       0.707  
       (0.639)  
Asset tangibilityt−1 −1.506*** −1.679*** −1.696*** −0.785*** −0.941*** −0.295 −1.872*** −1.613*** 
 (0.212) (0.272) (0.273) (0.225) (0.287) (0.364) (0.332) (0.344) 
Sizet−1 0.953*** 1.116** 0.884* 1.558*** 1.292** 0.830 1.037* 0.598 
 (0.367) (0.470) (0.474) (0.452) (0.593) (0.569) (0.564) (0.687) 
Age −0.174* −0.189 −0.179 −0.164* −0.248* −0.236* −0.124 −0.158 
 (0.0906) (0.122) (0.122) (0.0922) (0.129) (0.126) (0.157) (0.159) 
Export dummy 0.486** 0.674*** 0.521** 0.568*** 0.631*** 0.449* 0.246 0.159 
 (0.207) (0.245) (0.248) (0.205) (0.244) (0.247) (0.263) (0.260) 
TFPt−1 0.139*** 0.141** 0.154** 0.128*** 0.133** 0.140** 0.161** 0.149** 
 (0.0444) (0.0573) (0.0631) (0.0420) (0.0579) (0.0654) (0.0727) (0.0743) 
Business group −0.571*** −0.546*** −0.525*** −0.557*** −0.504*** −0.480*** −0.717*** −0.691*** 
 (0.105) (0.130) (0.127) (0.107) (0.133) (0.128) (0.158) (0.157) 
Time dummies Yes Yes Yes Yes Yes Yes Yes Yes 
Pseudo R2 0.212 0.167  0.193 0.157    
LR Chi2 708.19 499.50 126.38 645.96 468.97 71.43 118.22 117.00 
Prob. > Chi2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 
Observations 5,645 5,645 5,645 5,645 5,645 5,645 4,297 4,297 
VariablePoisson (1)Negative Binomial (2)Zero-Inflated Model (3)Poisson (4)Negative Binomial (5)Zero-Inflated Model (6)Zero-Inflated Model (7)Zero-Inflated Model (8)
Cash flowt−1 0.674*** 0.687*** 0.390***    0.357**  
 (0.0678) (0.0861) (0.120)    (0.149)  
Liquidityt−1    0.595*** 0.770*** 0.197  0.362** 
    (0.0996) (0.136) (0.156)  (0.162) 
Debt ratiot−1 0.525*** 0.506** 0.554** −0.250 −0.462 −0.295 −0.0383 −0.303 
 (0.136) (0.224) (0.280) (0.279) (0.372) (0.364) (0.400) (0.400) 
Capext−1       −1.097** −1.414*** 
       (0.548) (0.543) 
Long-term borrowingst−1       0.707  
       (0.639)  
Asset tangibilityt−1 −1.506*** −1.679*** −1.696*** −0.785*** −0.941*** −0.295 −1.872*** −1.613*** 
 (0.212) (0.272) (0.273) (0.225) (0.287) (0.364) (0.332) (0.344) 
Sizet−1 0.953*** 1.116** 0.884* 1.558*** 1.292** 0.830 1.037* 0.598 
 (0.367) (0.470) (0.474) (0.452) (0.593) (0.569) (0.564) (0.687) 
Age −0.174* −0.189 −0.179 −0.164* −0.248* −0.236* −0.124 −0.158 
 (0.0906) (0.122) (0.122) (0.0922) (0.129) (0.126) (0.157) (0.159) 
Export dummy 0.486** 0.674*** 0.521** 0.568*** 0.631*** 0.449* 0.246 0.159 
 (0.207) (0.245) (0.248) (0.205) (0.244) (0.247) (0.263) (0.260) 
TFPt−1 0.139*** 0.141** 0.154** 0.128*** 0.133** 0.140** 0.161** 0.149** 
 (0.0444) (0.0573) (0.0631) (0.0420) (0.0579) (0.0654) (0.0727) (0.0743) 
Business group −0.571*** −0.546*** −0.525*** −0.557*** −0.504*** −0.480*** −0.717*** −0.691*** 
 (0.105) (0.130) (0.127) (0.107) (0.133) (0.128) (0.158) (0.157) 
Time dummies Yes Yes Yes Yes Yes Yes Yes Yes 
Pseudo R2 0.212 0.167  0.193 0.157    
LR Chi2 708.19 499.50 126.38 645.96 468.97 71.43 118.22 117.00 
Prob. > Chi2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 
Observations 5,645 5,645 5,645 5,645 5,645 5,645 4,297 4,297 

LR = likelihood ratio, TFP = total factor productivity.

Notes: This table reports the results of count models, where the number of foreign affiliates is used as the dependent variable. Cash flow, size, age, and TFP are measured in logs. Exporter is a dummy for export status. Standard errors are reported in parentheses. ***, **, and * denote significance at the 1%, 5%, and 10% level, respectively.

Source: Authors’ calculations.

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