Table 7: Ordinary Versus Processing Trade

||Explained variable<br>Estimator|Domestic new expo<br>Conditional logit<br>Odi|rt link in <br>Pi|t+1<br>|Odi||
|---|---|---|---|---|---|---|
|||rnary<br>(1)<br>(2)|rocess<br>(3)|g<br>(4)|rnar<br>(5)|y<br>(6)|
|rs|Same product/country foreign export|0.011<sup>_b_</sup><br>0.011<sup>_b_</sup><br><br>|0.013<br>|0.013<br>|||
|illove|0/1 same product/country foreign export|(0.004)<br>(0.004)<br>0.105<sup>_a_</sup><br>0.104<sup>_a_</sup><br><br>|(0.008)<br>0.156<sup>_c_</sup><br>|(0.008)<br>0.155<sup>_c_</sup><br>|||
|n Sp|Total foreign export|(0.042)<br>(0.042)<br>-0.289<br>(0216)|(0.088)<br>-0.350<br>(0347)|(0.088)|||
|oreig|Other products-same country foreign export|.<br>-0.0001<br>(0.003)|.|0.008<br>(0.010)|||
|F|Other countries-same product foreign export|0.003<sup>_b_</sup><br>||0.008<sup>_c_</sup><br>|||
||Other countries/products foreign export|(0.002)<br>-0.288||(0.004)<br>-0.343|||
|||(0209)||(0352)|||
|rs|Same product/country ODT foreign export|.||.|0.017<sup>_a_</sup>|0.017<sup>_a_</sup>|
|ve|||||(0.003)|(0.003)|
|illo|0/1 same product/country ODT foreign export||||0.064<sup>_b_</sup><br>|0.062<sup>_b_</sup><br>|
|T Sp|Total ODT foreign export||||(0.027)<br>0.097<br>|(0.027)|
|OD|Other products-same country ODT foreign export||||(0.112)|0.003<br>(0002)|
|eign|Other countries-same product ODT foreign export|||||.<br>0.009<sup>_b_</sup><br>(0002)|
|For|Other countries/products ODT foreign export|||||.<br>0.082<br>(0.110)|
|s|Sameroduct/countrPCSforeinexort||||0002|0002|
|ver|py g p<br>||||.<br>(0.007)|.<br>(0.007)|
|illo|0/1 same product/country PCS foreign export||||0.105<sup>_c_</sup><br>(0056)|0.098<sup>_c_</sup><br>(0056)|
|Sp|Total PCS foreign export||||.<br>-0.001<br>|.|
|PCS|Other products-same country PCS foreign export||||(0.068)|-0.002<br>0002|
|reign|Other countries-same product PCS foreign export|||||(.)<br>0.004<sup>_b_</sup><br>0002|
|Fo|Other countries/products PCS foreign export|||||(.)<br>-0.007<br>(0068)|
||Control for domestic presence<br>|yes<br>yes<br><br>|yes<br>|yes<br>|yes<br>|.<br>yes<br>|
||Control for imports and GDPs<br>Control for Macro export|yes<br>yes<br>yes<br>yes|yes<br>yes|yes<br>yes|yes<br>yes|yes<br>yes|
||Control for Macro export lags<br>|yes<br>yes|yes|yes|yes|yes|
||Observations|4,161,535|289|,940|4,16|1,535|
||R-squared (%)<br>|12.48<br>12.48<br>|15.76<br>|15.78<br>|12.52<br>|12.54|
||Fixed efects|Provinc|e-product(|HS4)-coun|try triad||
||Fixed efects||ye|ar|||
||Share of ODT domestic starts<br>Fttfldditt<sup>_i_</sup>|0.217<br>0.217<br>2035<sup>_a_</sup><br>2144<sup>_a_</sup>|0.184<br>9967<sup>_a_</sup>|0.184<br>11360<sup>_a_</sup>|0.217<br>1217<sup>_a_</sup>|0.217<br>1225<sup>_a_</sup>|
|_i_|-es o excue nsrumens|.<br>.<br>18.25<sup>_a_</sup><br>19.44<sup>_a_</sup>|.<br>70.17<sup>_a_</sup>|.<br>77.36<sup>_a_</sup>|.<br>11.62<sup>_a_</sup><br>|.<br>11.85<sup>_a_</sup><br>|
|s IV|||||29.52<sup>_a_</sup><br>2703<sup>_a_</sup>|31.72<sup>_a_</sup><br>2938<sup>_a_</sup>|
|st|Hidtt|153<br>149|145|119|.<br>|.<br>|
|Te|ansen over es<br>p-value<br>|.<br>.<br>0.46<br>0.47|.<br>0.56|.<br>0.55|n.a.<br>n.a.|n.a<br>n.a|
||Endogeneity test<br>p-value|3.41<br>3.40<br>018<br>018|4.30<br>012|4.41<br>011|5.17<br>024|5.41<br>025|
|Het|eroskedasticity-robust standard errors are rep|.<br>.<br>orted in parenthe|.<br>ses.Stan|.<br>dard erro|.<br>rs are cl|.<br>ustered|
|<br>at t<br>_i_|<br>he province level. <sup>_a_</sup>, <sup>_b_ </sup>and <sup>_c_ </sup>indicate signifca<br>|<br>nce at the 1%, 5<br>|<br>% and 10<br>|<br>% confd<br>|<br>ence leve<br>|<br>ls.<br>|
|T|he test statistics correspond to results from|linear probability|estimate|s instrum|enting|he for-|
|eign|spillovers with the interactions of the coun|try-product-year i|mport v|alue from|the rest|of the|
|wor<br>|ld and of the yearly growth rate of these im<br>|ports with the n<br>|umber o<br>|f EPZs a<br>|nd the <br>|number<br>|
|of|igh-Technology zones in the province-year,|respectively. The|instrum|ented var|iables ar|e same|
|pro|duct/country foreign export and 0/1 same p|roduct/country fo|reign exp|ort in co|lumns 1|and 2,|
|sam|e product/country ODT foreign export and|0/1 same produc|t/countr|y ODT fo|reign ex|port in|
|colu<br>|mns 3 and 4, and same product/country fo<br>|reign ODT expor<br>|t, same <br>|product/<br>|country <br>|foreign<br>|
|PC|export0/1sameproduct/countryODTf|reignexportand|0/1sam|eprodu|t/count|yPCS|
|fore<br>that|, <br>ign export in columns 5 and 6. In these two l<br> the Hansen overidentifcation test cannot b|<br>atter regressions, <br>e computed.|<br> the mod|<br>el is exac|tly ident|<br>ifed so|

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