Table 5 The effect of FDI and its modes... | Emerald Publishing

Table 5

The effect of FDI and its modes of entry on domestic entrepreneurship – the role of institutional support

	Voice and accountability			Government effectiveness			Regulatory quality
	FDI	Greenfield	M&A	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
FDI	0.836^***			0.816^***			0.817^***
	(0.037)			(0.044)			(0.041)
Greenfield		0.891^***			0.911^***			0.830^***
		(0.065)			(0.107)			(0.065)
M&A			0.652^***			0.585^***			0.562^***
			(0.055)			(0.061)			(0.062)
FDIvoice*	0.069
	(0.044)
Greenfield*voice		0.196^**
		(0.086)
M&Avoice*			−0.016
			(0.058)
FDIeffect*				0.399^**
				(0.173)
Greenfield*effect					1.016^**
					(0.446)
M&Aseffect*						0.301
						(0.229)
FDIregulation*							0.336^**
							(0.139)
Greenfield*regulation								0.738^***
								(0.268)
M&Aregulation*									0.367^*
									(0.202)
Voice	−0.555	−1.478^**	−0.039
	(0.346)	(0.675)	(0.365)
Effect				−3.221^**	−7.718^**	−2.099
				(1.336)	(3.447)	(1.460)
Regulation							−2.632^**	−5.547^***	−2.320^*
							(1.093)	(2.096)	(1.308)
Controls	Y	Y	Y	Y	Y	Y	Y	Y	Y
Durbin–Wu–Hausman test	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Overindentification test	0.015	0.019	0.197	0.178	0.986	0.283	0.377	0.414	0.550
Underidentification test	0.000	0.000	0.000	0.002	0.017	0.094	0.000	0.000	0.027
Observations	835	775	558	835	775	558	835	775	558
R-squared	0.542	0.450	0.147	0.395	−0.363	−0.127	0.444	0.098	−0.213

	Voice and accountability			Government effectiveness			Regulatory quality
	FDI	Greenfield	M&A	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
FDI	0.836^***			0.816^***			0.817^***
	(0.037)			(0.044)			(0.041)
Greenfield		0.891^***			0.911^***			0.830^***
		(0.065)			(0.107)			(0.065)
M&A			0.652^***			0.585^***			0.562^***
			(0.055)			(0.061)			(0.062)
FDI*voice	0.069
	(0.044)
Greenfield*voice		0.196^**
		(0.086)
M&A*voice			−0.016
			(0.058)
FDI*effect				0.399^**
				(0.173)
Greenfield*effect					1.016^**
					(0.446)
M&As*effect						0.301
						(0.229)
FDI*regulation							0.336^**
							(0.139)
Greenfield*regulation								0.738^***
								(0.268)
M&A*regulation									0.367^*
									(0.202)
Voice	−0.555	−1.478^**	−0.039
	(0.346)	(0.675)	(0.365)
Effect				−3.221^**	−7.718^**	−2.099
				(1.336)	(3.447)	(1.460)
Regulation							−2.632^**	−5.547^***	−2.320^*
							(1.093)	(2.096)	(1.308)
Controls	Y	Y	Y	Y	Y	Y	Y	Y	Y
Durbin–Wu–Hausman test	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Overindentification test	0.015	0.019	0.197	0.178	0.986	0.283	0.377	0.414	0.550
Underidentification test	0.000	0.000	0.000	0.002	0.017	0.094	0.000	0.000	0.027
Observations	835	775	558	835	775	558	835	775	558
R-squared	0.542	0.450	0.147	0.395	−0.363	−0.127	0.444	0.098	−0.213

	Rule of law			Political stability			Control of corruption
	FDI	Greenfield	M&A	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(10)	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)
FDI	0.809^***			0.788^***			0.827^***
	(0.035)			(0.040)			(0.038)
Greenfield		0.953^***			0.933^***			0.958^***
		(0.113)			(0.113)			(0.124)
M&A			0.645^***			0.665^***			0.616^***
			(0.052)			(0.066)			(0.052)
FDIrule*	0.185^*
	(0.095)
Greenfield*rule		0.619^**
		(0.295)
M&Arule*			0.105
			(0.098)
FDIstability*				0.249^***
				(0.087)
Greenfield*stability					0.534^**
					(0.218)
M&Asstability*						0.085
						(0.116)
FDIcorruption*							0.134^*
							(0.072)
Greenfield*corruption								0.715^**
								(0.359)
M&Acorruption*									0.156
									(0.125)
Rule	−1.639^**	−4.868^**	−0.832
	(0.754)	(2.350)	(0.670)
Stability				−2.050^***	−4.086^**	−0.504
				(0.627)	(1.601)	(0.627)
Corruption							−1.283^**	−5.869^**	−1.295
							(0.588)	(2.928)	(0.879)
Controls	Y	Y	Y	Y	Y	Y	Y	Y	Y
Durbin–Wu–Hausman test	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Overidentification test	0.087	0.535	0.243	0.019	0.031	0.408	0.066	0.192	0.086
Underidentification test	0.000	0.015	0.001	0.000	0.003	0.008	0.000	0.106	0.017
Observations	835	775	558	835	775	558	835	775	558
R-squared	0.527	0.134	0.084	0.553	0.281	0.077	0.529	−0.011	0.088

	Rule of law			Political stability			Control of corruption
	FDI	Greenfield	M&A	FDI	Greenfield	M&A	FDI	Greenfield	M&A
	(10)	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)
FDI	0.809^***			0.788^***			0.827^***
	(0.035)			(0.040)			(0.038)
Greenfield		0.953^***			0.933^***			0.958^***
		(0.113)			(0.113)			(0.124)
M&A			0.645^***			0.665^***			0.616^***
			(0.052)			(0.066)			(0.052)
FDI*rule	0.185^*
	(0.095)
Greenfield*rule		0.619^**
		(0.295)
M&A*rule			0.105
			(0.098)
FDI*stability				0.249^***
				(0.087)
Greenfield*stability					0.534^**
					(0.218)
M&As*stability						0.085
						(0.116)
FDI*corruption							0.134^*
							(0.072)
Greenfield*corruption								0.715^**
								(0.359)
M&A*corruption									0.156
									(0.125)
Rule	−1.639^**	−4.868^**	−0.832
	(0.754)	(2.350)	(0.670)
Stability				−2.050^***	−4.086^**	−0.504
				(0.627)	(1.601)	(0.627)
Corruption							−1.283^**	−5.869^**	−1.295
							(0.588)	(2.928)	(0.879)
Controls	Y	Y	Y	Y	Y	Y	Y	Y	Y
Durbin–Wu–Hausman test	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Overidentification test	0.087	0.535	0.243	0.019	0.031	0.408	0.066	0.192	0.086
Underidentification test	0.000	0.015	0.001	0.000	0.003	0.008	0.000	0.106	0.017
Observations	835	775	558	835	775	558	835	775	558
R-squared	0.527	0.134	0.084	0.553	0.281	0.077	0.529	−0.011	0.088

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