Note(s): This table reports the IV test results based on the 2SLS regressions. Column (1) presents the first stage regression results. The instrumental variable, Pop_density, is a provincial-level measure calculated by first aligning the areas from the 26th year of the Hongwu period with current administrative districts, and then dividing the population of that period by the area, expressed in persons per square kilometer. Column (2) presents the second stage regression results, where Clan-Hat is the predicted value of Clan based on the first stage regression. Variable definitions are provided in Table 1. Industry- and year-fixed effects are included in all columns. Coefficient estimates are reported in the row above the t-statistics in parentheses. ***, **, and * denote two-tailed significance at the 0.01, 0.05, and 0.10 levels