Variable description and expected signs
| Variable | Definition | Expected sign | Reference |
|---|---|---|---|
| tfpit | Total factor productivity is measured by LP method | Petrin, Poi, and Levinsohn (2004) | |
| Kit | Average value of physical capital of firm i at year t | (+) | Petrin et al. (2004) |
| Lit | Total labor of firm i at year t | (+) | Petrin et al. (2004) |
| Mit | Average value of intermediate input of firm i at year t | (+) | Petrin et al. (2004) |
| Firm_ageit | Age of firm i is calculated at year t | (+) | Cucculelli, Mannarino, Pupo, and Ricotta (2014), Huergo and Jaumandreu (2004), Saeidi, Sofian, Saeidi, Saeidi, and Saaeidi (2015) |
| Firm_sizeit | Proxy as logarithm total asset of firm i at year | (+)/(−) | Margaritis and Psillaki (2010), Cucculelli et al. (2014), Tovar, Ramos-Real, and De Almeida (2011), Dhawan (2001) |
| Capital_structureit | Ratio of debt over total asset of firm i at year t | (+) | Jensen and Meckling (1976), Myers (1977), Margaritis and Psillaki (2010) |
| Dummy_innovationit | The variable takes the value of 1 if firm i has R&D expenditure during year t. Otherwise, it takes the value of 0 | (+) | Belderbos, Carree, and Lokshin (2004), Hall, Lotti, and Mairesse (2009), Griffith, Huergo, Mairesse, and Peters (2006) |
| Dummy_outsourcingit | It takes the value of 1 if the firm i has outsourcing activities during that year t, and 0, otherwise | (+) | Girma and Görg (2004), López (2014), Ten Raa and Wolff (2001) |
| Outsourcing_exp_intensityit | Ratio of total outsourcing expenditure to total expenditure of firm i at year t | (+) | Daveri and Jona-Lasinio (2008) Girma and Görg (2004), López (2014), Ten Raa and Wolff (2001) |
| Variable | Definition | Expected sign | Reference |
|---|---|---|---|
| Total factor productivity is measured by LP method | |||
| Average value of physical capital of firm | (+) | ||
| Total labor of firm | (+) | ||
| Average value of intermediate input of firm | (+) | ||
| Age of firm | (+) | ||
| Proxy as logarithm total asset of firm | (+)/(−) | ||
| Ratio of debt over total asset of firm | (+) | ||
| The variable takes the value of 1 if firm | (+) | ||
| It takes the value of 1 if the firm | (+) | ||
| Ratio of total outsourcing expenditure to total expenditure of firm | (+) |
Source(s): Authors’ synthesis
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