33 Appendix 2 Description of industry dummy Appendix 1 Average productivity trajectories in home plants Appendices

33

Appendices

Appendix 1 Average productivity trajectories in home plants

(Barba Navaretti & Venables, 2004)

Appendix 2 Description of industry dummy

Industry Dummy BIK Code Description Variable

Dummy fixed effect 1 1120 Diensten van aardolie- en aardgaswinning DF1

Dummy fixed effect 2 1570 Productie diervoeder DF2

Dummy fixed effect 3 1583 Vervaardiging van suiker DF3

Dummy fixed effect 4 1596 Bierbrouwerijen DF4

Dummy fixed effect 5 2210 Uitgeverijen DF5

Dummy fixed effect 6 2212 Uitgeverijen van dagbladen DF6 Dummy fixed effect 7 2410 Productie basischemicaliën DF7 Dummy fixed effect 8 2413 Prod. Ov. Organische basischemicaliën DF8 Dummy fixed effect 9 2442 Productie farmaceutische producten DF9

Dummy fixed effect 10 2840 Poeder metallurgie DF10

Dummy fixed effect 11 2953 Prod. Mach. V. Prod. Voedings- en genotm. DF11 Dummy fixed effect 12 2956 Overige productiemachines DF12 Dummy fixed effect 13 3001 Vervaardiging van kantoormachines DF13 Dummy fixed effect 14 3130 Prod. Geïsoleerde kabel en draad DF14 Dummy fixed effect 15 4511 Slopen bouwwerken/ Grondverzet DF15 Dummy fixed effect 16 4521 B. en U. - bouw; kunstwerken DF16 Dummy fixed effect 17 5211 Superm./ Winkels alg. Assort. Voedingsm. DF17 Dummy fixed effect 18 5143 Elektrisch huishoudelijk apparatuur DF18

Dummy fixed effect 19 5248 Overige winkels (1) DF19

Dummy fixed effect 20 6410 Post- en koeriersdiensten DF20 Dummy fixed effect 21 6512 Banken en effectenkredietinstellingen DF21 Dummy fixed effect 22 6601 Levens-/ Naturaverzekeringen etc. DF22

Dummy fixed effect 23 7415 Holdings (geen fin.) DF23

34

Appendix 3 Assumptions of the multiple regression model

MR1 yt =

t = 1, … , T

MR2 E(yt) =

MR3 var(yt) = var(et) =

MR4 cov(yt, ys) = cov(et, es) = 0

MR5 The values of xtK are not random and are not exact linear functions of the other

explanatory variables

MR6 y ~ N[

] et ~ N(0,

)

(Hill et al., 2001)

Appendix 4 Descriptive statistics

LNPROD

NL LNLABOURNL LNKFOREIGN LNKDOMESTIC LNWAGE LNOUTPUT AGE CAPITALINT

35

Appendix 5 Regression result on performance

Dependent Variable: LNPRODNL

Method: Least Squares (Fixed effects model) Date: 06/15/07 Time: 14:51

Sample: 1 224

Included observations: 219 Excluded observations: 5

Variable Coefficient Std. Error t-Statistic Prob. C 2.377623 0.582075 4.084733 0.0001*

LNKDOMESTIC 0.257108 0.063080 4.075884 0.0001*

LNKFOREIGN -0.044259 0.038665 -1.144696 0.2536 R-squared 0.106406 Mean dependent var 5.314988 Adjusted R-squared 0.098132 S.D. dependent var 0.868056 S.E. of regression 0.824364 Akaike info criterion 2.465195 Sum squared resid 146.7884 Schwarz criterion 2.511620 Log likelihood -266.9388 F-statistic 12.86031 Durbin-Watson stat 2.183549 Prob(F-statistic) 0.000005

36

Appendix 6 Regression result on performance including control variables

Dependent Variable: LNPRODNL

Method: Least Squares (Fixed effects model) Date: 06/15/07 Time: 15:13

Sample: 1 224

Included observations: 219 Excluded observations: 5

Variable Coefficient Std. Error t-Statistic Prob. C 1.873897 0.779992 2.402458 0.0172*

LNKDOMESTIC 0.147296 0.058713 2.508735 0.0130*

LNKFOREIGN -0.034953 0.052568 -0.664906 0.5069 AGE 0.002357 0.001338 1.760882 0.0799 CAPITALINT 2.69E-05 1.26E-05 2.139467 0.0337* DF2 2.374232 0.274056 8.663306 0.0000 DF3 1.935052 0.270042 7.165750 0.0000 DF4 1.245167 0.306813 4.058393 0.0001 DF5 1.961801 0.270315 7.257458 0.0000 DF6 1.808038 0.265848 6.801030 0.0000 DF7 1.708878 0.272430 6.272725 0.0000 DF8 2.241245 0.308483 7.265367 0.0000 DF9 2.789119 0.283186 9.849081 0.0000 DF10 1.336715 0.262989 5.082784 0.0000 DF11 1.004987 0.319559 3.144915 0.0019 DF12 2.115164 0.280414 7.542992 0.0000 DF13 0.409647 0.290523 1.410034 0.1602 DF14 1.225231 0.272519 4.495953 0.0000 DF15 2.147323 0.264023 8.133077 0.0000 DF16 2.189581 0.237141 9.233264 0.0000 DF17 1.147860 0.370985 3.094088 0.0023 DF18 2.173046 0.277059 7.843256 0.0000 DF19 0.703368 0.393145 1.789079 0.0752 DF20 -0.067359 0.359182 -0.187535 0.8514 DF21 1.108238 0.385027 2.878338 0.0045 DF22 2.412543 0.373761 6.454780 0.0000 DF23 2.371805 0.222186 10.67487 0.0000 DF24 1.191903 0.236344 5.043079 0.0000 DF25 1.435454 0.224905 6.382486 0.0000 R-squared 0.742885 Mean dependent var 5.314988 Adjusted R-squared 0.704995 S.D. dependent var 0.868056 S.E. of regression 0.471479 Akaike info criterion 1.456909 Sum squared resid 42.23559 Schwarz criterion 1.905690 Log likelihood -130.5315 F-statistic 19.60607 Durbin-Watson stat 2.055360 Prob(F-statistic) 0.000000

37

Appendix 7 Regression result on employment

Dependent Variable: LNLABOURNL

Method: Least Squares (Fixed effects model) Date: 06/15/07 Time: 15:31

Sample: 1 224

Included observations: 219 Excluded observations: 5

Variable Coefficient Std. Error t-Statistic Prob. C 1.384229 2.893313 0.478423 0.6328 LNWAGE -0.557390 1.011294 -0.551165 0.5821 LNOUTPUT 0.779458 0.086722 8.988008 0.0000* LNKDOMESTIC -0.245532 0.091668 -2.678480 0.0080* LNKFOREIGN 0.004822 0.052729 0.091455 0.9272 R-squared 0.352529 Mean dependent var 8.044130 Adjusted R-squared 0.340427 S.D. dependent var 1.316719 S.E. of regression 1.069362 Akaike info criterion 2.994568 Sum squared resid 244.7165 Schwarz criterion 3.071944 Log likelihood -322.9052 F-statistic 29.12918 Durbin-Watson stat 2.226562 Prob(F-statistic) 0.000000

38

Appendix 8 Regression result on employment including control variables

Dependent Variable: LNLABOURNL

Method: Least Squares (Fixed effects model) Date: 06/15/07 Time: 15:33

Sample: 1 224

Included observations: 219 Excluded observations: 5

Variable Coefficient Std. Error t-Statistic Prob. C 2.451153 1.294036 1.894193 0.0597 LNWAGE -0.157932 0.432417 -0.365231 0.7153 LNOUTPUT 0.233591 0.080250 2.910769 0.0040* LNKDOMESTIC -0.010960 0.064148 -0.170861 0.8645 LNKFOREIGN 0.178603 0.059121 3.020994 0.0029* CAPITALINT -0.000146 1.61E-05 -9.037032 0.0000* DF2 -0.092815 0.251125 -0.369598 0.7121 DF3 -0.159104 0.253194 -0.628387 0.5305 DF4 0.275176 0.258537 1.064359 0.2885 DF5 -0.412381 0.255421 -1.614518 0.1081 DF6 0.820508 0.250088 3.280874 0.0012 DF7 0.925792 0.267360 3.462721 0.0007 DF8 1.100258 0.284162 3.871943 0.0001 DF9 0.471441 0.263152 1.791519 0.0748 DF10 -0.024978 0.246965 -0.101141 0.9195 DF11 1.547187 0.250675 6.172077 0.0000 DF12 0.358408 0.262576 1.364973 0.1739 DF13 0.511369 0.249385 2.050521 0.0417 DF14 -0.121651 0.253785 -0.479346 0.6322 DF15 -0.826399 0.238487 -3.465166 0.0007 DF16 1.202388 0.246195 4.883882 0.0000 DF17 -0.895073 0.254659 -3.514791 0.0006 DF18 -1.193121 0.266546 -4.476232 0.0000 DF19 1.393335 0.358954 3.881650 0.0001 DF20 2.799301 0.265130 10.55823 0.0000 DF21 0.973848 0.299447 3.252152 0.0014 DF22 0.796103 0.359868 2.212212 0.0282 DF23 -0.384458 0.227822 -1.687539 0.0931 DF24 0.041457 0.219911 0.188519 0.8507 DF25 1.598045 0.234278 6.821161 0.0000 R-squared 0.902921 Mean dependent var 8.044130 Adjusted R-squared 0.888025 S.D. dependent var 1.316719 S.E. of regression 0.440609 Akaike info criterion 1.325328 Sum squared resid 36.69168 Schwarz criterion 1.789584 Log likelihood -115.1234 F-statistic 60.61624 Durbin-Watson stat 2.449873 Prob(F-statistic) 0.000000