Table 2.

Baseline results of the GVC effect on innovation in South Africa

ProbitIV 2SLS
GVC1GVC2GVC1GVC2
Variable(1)(2)(3)(4)
GVC0.090*** (0.017)0.094*** (0.023)0.116*** (0.0054)0.192*** (0.010)
SIZE−0.020 (0.011)−0.014 (0.011)−0.010** (0.0011)−0.002 (0.0013)
LNAGE−0.027*** (0.0093)−0.030*** (0.0094)−0.008*** (0.00083)−0.008** (0.00085)
RD0.042** (0.016)0.046** (0.016)0.0209*** (0.0019)0.0091** (0.0011)
WEB0.025 (0.021)0.024 (0.021)0.0074 (0.0013)0.0050 (0.0017)
SKILL0.001 (0.030)0.012 (0.030)−0.008 (0.0023)−0.0025 (0.0021)
TRAIN0.063*** (0.019)0.073*** (0.018)0.023** (0.0021)0.028*** (0.0021)
FDI0.122*** (0.043)0.130*** (0.044)0.123*** (0.0079)0.128*** (0.0077)
FINANCE0.005 (0.007)0.006 (0.007)0.0001 (0.00077)0.0014 (0.00077)
FEMALE−0.007 (0.016)−0.017 (0.016)0.003 (0.0018)−0.002 (0.0014)
LNEXPER0.039*** (0.012)0.0098*** (0.013)0.024** (0.0016)0.011*** (0.0017)
INDUSTRYYesYesYesYes
REGIONYesYesYesYes
OBSERVATIONS1,0781,0781,0781,078
Endogeneity test (P-value)0.0040.001
Sargan test (P-value)0.64040.527
Cragg-Donald Wald F statistic29.83129.160
Stock-Yogo weak ID at 5%13.9113.91
Note(s):

Marginal effects; Standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Authors’ own work

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