Instrumental variable method
| Variable | (1) | (2) |
|---|---|---|
| DT | lnCOGS | |
| CSE | 0.106*** | |
| (23.199) | ||
| lnREV | 0.081* | 0.969*** |
| (1.938) | (149.611) | |
| Dec×lnREV | 0.180 | −0.164** |
| (0.990) | (−2.405) | |
| DT | 0.010** | |
| (2.547) | ||
| Dec×lnREV×DT | 0.056** | |
| (2.171) | ||
| EInt | 0.088*** | −0.001 |
| (10.477) | (−1.348) | |
| Dec×lnREV×EInt | 0.020 | −0.048*** |
| (0.441) | (−5.319) | |
| AInt | −0.054*** | −0.000 |
| (−12.184) | (−0.557) | |
| Dec×lnREV×AInt | −0.047*** | −0.002 |
| (−2.745) | (−0.614) | |
| Sdec | −0.118*** | −0.003 |
| (−3.612) | (−0.907) | |
| Dec×lnREV×Sdec | −0.168 | −0.007 |
| (−1.165) | (−0.327) | |
| GDPgrow | 0.723 | 0.131** |
| (1.462) | (2.344) | |
| Dec×lnREV×GDPgrow | −0.301 | 1.711*** |
| (−0.163) | (4.369) | |
| Independ | 0.081*** | 0.004 |
| (5.945) | (0.271) | |
| Top1 | −0.440*** | −0.003 |
| (−8.448) | (−0.584) | |
| Mshare | 0.0109* | 0.015** |
| (1.837) | (2.536) | |
| Dual | 0.114*** | 0.001 |
| (6.143) | (0.421) | |
| Age | −0.040*** | −0.008*** |
| (−2.699) | (−4.917) | |
| Soe | −0.251*** | 0.003 |
| (−13.644) | (1.406) | |
| Lev | −0.205*** | 0.021*** |
| (−4.485) | (3.990) | |
| Size | 0.170*** | −0.001 |
| (22.841) | (−0.489) | |
| _cons | −4.700*** | 0.019 |
| (−24.839) | (0.768) | |
| Industry and Year FE | Yes | Yes |
| N | 22,838 | 22,838 |
| adj. R2 | 0.438 | 0.862 |
| F | 530.435 | 1410.427 |
| Kleibergen–Paap rk Lagrange multiplier (LM) statistic | 505.706*** | |
| Kleibergen–Paap rk Wald F statistic | 266.779*** |
| Variable | (1) | (2) |
|---|---|---|
| DT | lnCOGS | |
| CSE | ||
| (23.199) | ||
| lnREV | ||
| (1.938) | (149.611) | |
| Dec×lnREV | 0.180 | |
| (0.990) | (−2.405) | |
| DT | ||
| (2.547) | ||
| Dec×lnREV×DT | ||
| (2.171) | ||
| EInt | −0.001 | |
| (10.477) | (−1.348) | |
| Dec×lnREV×EInt | 0.020 | |
| (0.441) | (−5.319) | |
| AInt | −0.000 | |
| (−12.184) | (−0.557) | |
| Dec×lnREV×AInt | −0.002 | |
| (−2.745) | (−0.614) | |
| Sdec | −0.003 | |
| (−3.612) | (−0.907) | |
| Dec×lnREV×Sdec | −0.168 | −0.007 |
| (−1.165) | (−0.327) | |
| GDPgrow | 0.723 | |
| (1.462) | (2.344) | |
| Dec×lnREV×GDPgrow | −0.301 | |
| (−0.163) | (4.369) | |
| Independ | 0.004 | |
| (5.945) | (0.271) | |
| Top1 | −0.003 | |
| (−8.448) | (−0.584) | |
| Mshare | ||
| (1.837) | (2.536) | |
| Dual | 0.001 | |
| (6.143) | (0.421) | |
| Age | ||
| (−2.699) | (−4.917) | |
| Soe | 0.003 | |
| (−13.644) | (1.406) | |
| Lev | ||
| (−4.485) | (3.990) | |
| Size | −0.001 | |
| (22.841) | (−0.489) | |
| _cons | 0.019 | |
| (−24.839) | (0.768) | |
| Industry and Year FE | Yes | Yes |
| 22,838 | 22,838 | |
| adj. | 0.438 | 0.862 |
| F | 530.435 | 1410.427 |
| Kleibergen–Paap rk Lagrange multiplier (LM) statistic | ||
| Kleibergen–Paap rk Wald F statistic |
Note(s): Table 9 introduces the natural logarithm of local general public fiscal expenditure on science and technology (CSE) as an instrumental variable and employs two-stage least squares regression analysis for Model 2. Definitions of all variables are provided in Appendix 1. All models are controlled for industry and year effects
t-values are in parentheses. ***p < 0.01, **p < 0.05 and *p < 0.1