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To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ ln Kit + ß₂ ln Lit +B3FDI it + ß₁eduit + ß5RDit + ß6sizeit + ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105,242

To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ ln Kit + ß₂ ln Lit +B3FDI it + ß₁eduit + ß5RDit + ß6sizeit + ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105,242

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I dont understand why my question is being rejected so i'll resend this one. The data is attached in the image. Please help me with these questions. Thank you in advanced!!

a. How many observations are included in the data? Is the data balanced?
b. Is the above result estimated from the fixed effects model or the random effects model?
c. Explain the meaning of the estimate coefficient of the variable ???

To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ In Kit + ß₂ ln Lit +B3FDIit + B4eduit + ß5RDit + B6sizeit + Ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105, 242
Transcribed Image Text:To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo + B₁ In Kit + ß₂ ln Lit +B3FDIit + B4eduit + ß5RDit + B6sizeit + Ci + Uit where, In VAis the natural logarithm of total added value; FDI is a dummy variable, equal to 1 if the enterprise has foreign direct investment, and zero otherwise; In K is the natural logarithm of total capital; In L is the logarithm of total labor; edu is labor training cost/total labor; RD is the total cost of research and development/total investment; size is the size of the business, the dummy variable includes 4 categories (1-super small; 2-small; 3-medium; 4- large), and size_1 is the base category. The estimated results of the panel model are reported below. Fixed-effects (within) regression Group variable: ma_thue Number of obs Number of groups = 736,694 105, 242
R-sq: within = 0.3026 between 0.8641 overall = 0.7677 corr (u_i, Xb) = 0.4678 1n_VA_ 1n_K_ | 1n_L_ | fdi edu R&D size | 234 3 .033728 I -.0277995 I -.0874293 3.944356 sigma_u | .67424384 sigma_e | 63714114 rho 52827013 Coef. cons | 152219 .7200339 .2223424 .0001049 .0000101 Robust Std. Err. .0014121 .0031237 .0356943 .0000345 .0000192 F(8,105241) Prob > F = 15766.30 0.0000 (Std. Err. adjusted for 105,242 clusters in ma_thue) .0042856 .0080698 .0115103 t Obs per group: 6.23 3.04 -0.53 P>|t| 107.80 0.000 230.51 0.000 0.000 0.002 0.599 7.87 0.000 -3.44 0.001 -7.60 0.000 .0112145 351.72 0.000 min avg max [95% Conf. Interval] 1494513 .7139116 .1523822 .0000373 -.0000477 .0253283 -.0436162 -.1099893 7 7.0 7 3.922376 (fraction of variance due to u_i) 1549867 .7261563 .2923027 .0001725 .0000275 .0421277 -.0119827 -.0648694 3.966336
Transcribed Image Text:R-sq: within = 0.3026 between 0.8641 overall = 0.7677 corr (u_i, Xb) = 0.4678 1n_VA_ 1n_K_ | 1n_L_ | fdi edu R&D size | 234 3 .033728 I -.0277995 I -.0874293 3.944356 sigma_u | .67424384 sigma_e | 63714114 rho 52827013 Coef. cons | 152219 .7200339 .2223424 .0001049 .0000101 Robust Std. Err. .0014121 .0031237 .0356943 .0000345 .0000192 F(8,105241) Prob > F = 15766.30 0.0000 (Std. Err. adjusted for 105,242 clusters in ma_thue) .0042856 .0080698 .0115103 t Obs per group: 6.23 3.04 -0.53 P>|t| 107.80 0.000 230.51 0.000 0.000 0.002 0.599 7.87 0.000 -3.44 0.001 -7.60 0.000 .0112145 351.72 0.000 min avg max [95% Conf. Interval] 1494513 .7139116 .1523822 .0000373 -.0000477 .0253283 -.0436162 -.1099893 7 7.0 7 3.922376 (fraction of variance due to u_i) 1549867 .7261563 .2923027 .0001725 .0000275 .0421277 -.0119827 -.0648694 3.966336
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