Table 3 The effect of FDI and its mode... | Emerald Publishing

Table 3

The effect of FDI and its mode of entry on domestic entrepreneurship

	Fixed-effects regression			IV-2SLS regression
	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(1)	(2)	(3)	(4)	(5)	(6)
FDI	0.039^**			0.839^***
	(0.018)			(0.036)
Greenfield		0.028			0.830^***
		(0.018)			(0.051)
M&A			0.014^*			0.670^***
			(0.008)			(0.059)
Openness	0.344^***	0.449^***	0.138	−0.419^***	−0.483^***	0.019
	(0.120)	(0.122)	(0.125)	(0.090)	(0.097)	(0.105)
Labor	2.239^***	2.551^***	3.204^***	0.423	0.906^**	1.074^**
	(0.686)	(0.676)	(0.735)	(0.406)	(0.390)	(0.543)
Exchange	−0.003	−0.003	−0.076	0.001	−0.001	2.746^***
	(0.003)	(0.003)	(0.158)	(0.001)	(0.001)	(0.591)
Population growth	0.001	0.001	−0.009	−0.165^***	−0.189^***	−0.176^***
	(0.013)	(0.013)	(0.014)	(0.020)	(0.020)	(0.040)
Government size	−0.015^*	−0.017^**	−0.026^***	−0.007	−0.006	−0.010
	(0.008)	(0.008)	(0.009)	(0.009)	(0.010)	(0.013)
Financial depth	0.002^**	0.003^**	0.001	0.003^**	0.004^**	−0.007^***
	(0.001)	(0.001)	(0.001)	(0.001)	(0.002)	(0.002)
Constant	4.720^***	4.268^***	4.344^***	2.538^***	1.962^***	4.713^***
	(1.054)	(1.039)	(1.126)	(0.605)	(0.620)	(0.895)
Country-fixed effects	YES	YES	YES	–	–	–
Year-fixed effects	YES	YES	YES	–	–	–
Durbin–Wu–Hausman test	–	–	–	0.000	0.000	0.000
Overindentification test	–	–	–	0.224	0.100	0.231
Underidentification test	–	–	–	0.000	0.000	0.000
Observations	835	775	558	835	775	558
R-squared	0.228	0.262	0.316	0.538	0.500	−0.029

	Fixed-effects regression			IV-2SLS regression
	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(1)	(2)	(3)	(4)	(5)	(6)
FDI	0.039^**			0.839^***
	(0.018)			(0.036)
Greenfield		0.028			0.830^***
		(0.018)			(0.051)
M&A			0.014^*			0.670^***
			(0.008)			(0.059)
Openness	0.344^***	0.449^***	0.138	−0.419^***	−0.483^***	0.019
	(0.120)	(0.122)	(0.125)	(0.090)	(0.097)	(0.105)
Labor	2.239^***	2.551^***	3.204^***	0.423	0.906^**	1.074^**
	(0.686)	(0.676)	(0.735)	(0.406)	(0.390)	(0.543)
Exchange	−0.003	−0.003	−0.076	0.001	−0.001	2.746^***
	(0.003)	(0.003)	(0.158)	(0.001)	(0.001)	(0.591)
Population growth	0.001	0.001	−0.009	−0.165^***	−0.189^***	−0.176^***
	(0.013)	(0.013)	(0.014)	(0.020)	(0.020)	(0.040)
Government size	−0.015^*	−0.017^**	−0.026^***	−0.007	−0.006	−0.010
	(0.008)	(0.008)	(0.009)	(0.009)	(0.010)	(0.013)
Financial depth	0.002^**	0.003^**	0.001	0.003^**	0.004^**	−0.007^***
	(0.001)	(0.001)	(0.001)	(0.001)	(0.002)	(0.002)
Constant	4.720^***	4.268^***	4.344^***	2.538^***	1.962^***	4.713^***
	(1.054)	(1.039)	(1.126)	(0.605)	(0.620)	(0.895)
Country-fixed effects	YES	YES	YES	–	–	–
Year-fixed effects	YES	YES	YES	–	–	–
Durbin–Wu–Hausman test	–	–	–	0.000	0.000	0.000
Overindentification test	–	–	–	0.224	0.100	0.231
Underidentification test	–	–	–	0.000	0.000	0.000
Observations	835	775	558	835	775	558
R-squared	0.228	0.262	0.316	0.538	0.500	−0.029

Note(s): Robust standard errors are in parentheses; ^*, ^** and ^*** denote significance levels at 10, 5 and 1%, respectively