The results are reported in table 4; again, the coefficients5 correspond to prefecture-level aggregates. The first three columns show that a 1 SD increase in the prefecture-level NTR gap is associated with increases in employment, capital, and foreign capital of between .06 and .17 log points. This corroborates the evidence of increased employment in the county-level data and suggests there is also an increase in capital investment. In columns 4 and 5, we observe that value and wage per worker both increase, indicating productivity gains from the reduction in tariff uncertainty associated with the WTO accession.

Table 4.

Factor Utilization and Other Firm Outcomes

(1)(2)(3)(4)(5)
EmploymentCapitalForeign CapitalValue Added per WorkerWages per Worker
Post $×$ NTR gap .062 .119 .166 .028 .089
(.035)* (.044)*** (.048)*** (.016)* (.050)*
Observations 2,492 2,515 2,496 2,492 2,240
(1)(2)(3)(4)(5)
EmploymentCapitalForeign CapitalValue Added per WorkerWages per Worker
Post $×$ NTR gap .062 .119 .166 .028 .089
(.035)* (.044)*** (.048)*** (.016)* (.050)*
Observations 2,492 2,515 2,496 2,492 2,240

The primary independent variable is the interaction of a post-2001 dummy and the standardized prefecture NTR gap. The specification includes the same control variables described in the notes to table 1, all calculated as the average at the prefecture-year level, as well as the NTR gap at the prefecture level entering linearly, province-year fixed effects, and prefecture-specific trends. Standard errors are estimated employing clustering at the prefecture level. Significant at ***1%, **5%, and *10%.

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