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Table 12. 
Firm-Level Outcomes of City Upgrading and City Capacity for Incumbents
Incumbent FirmsLog Main Operating RevenuesLog Main Operating CostLog Main Operating ProfitLog Number of EmployeesLog Labor VocationalLog Wage per EmployeeLog Export
City −1.210** −1.216** −1.311** −0.580 −0.252 −0.452* −0.348 
 (0.504) (0.501) (0.537) (0.390) (0.357) (0.262) (0.925) 
Capacity −21.560*** −22.010*** −17.690*** −14.790*** −15.430*** −0.127 −7.195 
 (4.616) (4.775) (4.695) (3.426) (4.028) (1.640) (12.580) 
City × 46.610** 46.650** 49.130** 18.570 8.353 17.370* 8.777 
Capacity (20.330) (20.120) (21.800) (15.020) (13.860) (10.380) (37.080) 
Constant 11.850*** 11.430*** 10.120*** 6.673*** 3.117*** 8.353*** 9.227*** 
 (0.672) (0.658) (0.752) (0.385) (0.219) (0.509) (0.990) 
Observations 32,517 32,428 21,283 18,193 3,892 17,496 4,759 
R2 0.330 0.336 0.228 0.245 0.221 0.251 0.179 
Block FE Yes Yes Yes Yes Yes Yes Yes 
Industry × Yes Yes Yes Yes Yes Yes Yes 
Year FE 
Province FE Yes Yes Yes Yes Yes Yes Yes 
Incumbent FirmsLog Main Operating RevenuesLog Main Operating CostLog Main Operating ProfitLog Number of EmployeesLog Labor VocationalLog Wage per EmployeeLog Export
City −1.210** −1.216** −1.311** −0.580 −0.252 −0.452* −0.348 
 (0.504) (0.501) (0.537) (0.390) (0.357) (0.262) (0.925) 
Capacity −21.560*** −22.010*** −17.690*** −14.790*** −15.430*** −0.127 −7.195 
 (4.616) (4.775) (4.695) (3.426) (4.028) (1.640) (12.580) 
City × 46.610** 46.650** 49.130** 18.570 8.353 17.370* 8.777 
Capacity (20.330) (20.120) (21.800) (15.020) (13.860) (10.380) (37.080) 
Constant 11.850*** 11.430*** 10.120*** 6.673*** 3.117*** 8.353*** 9.227*** 
 (0.672) (0.658) (0.752) (0.385) (0.219) (0.509) (0.990) 
Observations 32,517 32,428 21,283 18,193 3,892 17,496 4,759 
R2 0.330 0.336 0.228 0.245 0.221 0.251 0.179 
Block FE Yes Yes Yes Yes Yes Yes Yes 
Industry × Yes Yes Yes Yes Yes Yes Yes 
Year FE 
Province FE Yes Yes Yes Yes Yes Yes Yes 

FE = fixed effects.

Notes:

1. ***, **, and * denote significance at the 1%, 5%, and 10% level, respectively.

2. Standard errors are in parentheses and clustered at the county level.

3. Analysis is restricted to firms opened before 1997.

4. Vocational labor data are only available in 2004.

Source: Authors’ calculations.

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