# **Table C5.2: Impact of Political Turnover on Competition – controlling for time varying industry characteristics**

||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|
|---|---|---|---|---|---|---|---|---|---|
||Entry|Exit|PCM|PE|HHI|MS4|lnN|lnP|Z|
|PC family*1993|0.122*|0.023|-0.031|0.871|-0.036|0.001|0.152|0.065|1.380|
||(0.072)|(0.046)|(0.096)|(0.981)|(0.101)|(0.080)|(0.197)|(0.081)|(1.846)|
|PC family*1994|0.133|-0.046|-0.065|0.220|-0.048|-0.063|0.118|0.044|1.447|
||(0.097)|(0.065)|(0.085)|(0.965)|(0.073)|(0.074)|(0.158)|(0.071)|(2.021)|
|PC family*1995|0.022|-0.093|-0.024|1.523*|-0.017|-0.032|0.122|0.008|-1.728|
||(0.124)|(0.065)|(0.054)|(0.884)|(0.050)|(0.045)|(0.118)|(0.046)|(1.672)|
|PC family*2000|0.154**|-0.020|-0.105|-1.699*|-0.019|-0.066|0.013|-0.306|3.927**|
||(0.064)|(0.075)|(0.130)|(1.027)|(0.061)|(0.064)|(0.163)|(0.242)|(1.697)|
|PC family*2001|0.092**|-0.008|-0.135|-1.389|0.026|-0.098|-0.050|-0.302|3.350**|
||(0.045)|(0.057)|(0.159)|(0.991)|(0.067)|(0.078)|(0.151)|(0.266)|(1.395)|
|PC family*2002|0.110*|-0.014|-0.169|-0.491|0.059|-0.058|-0.029|-0.196|2.563|
||(0.060)|(0.087)|(0.172)|(1.330)|(0.075)|(0.103)|(0.149)|(0.236)|(1.664)|
|PC family*2003|0.145**|0.016|-0.026|-1.337|0.035|-0.075|0.005|-0.134|3.020*|
||(0.070)|(0.057)|(0.115)|(1.340)|(0.086)|(0.109)|(0.198)|(0.204)|(1.727)|
|PC family*2004|0.110**|0.027|-0.133|0.870|0.074|-0.123|-0.067|-0.114|2.037|
||(0.055)|(0.051)|(0.174)|(2.048)|(0.095)|(0.102)|(0.171)|(0.212)|(2.514)|
|PC family*2005|0.072|-0.073|-0.146|-0.422|0.023|-0.117|-0.146|-0.104|1.288|
||(0.064)|(0.080)|(0.173)|(1.347)|(0.079)|(0.101)|(0.195)|(0.224)|(2.599)|
|PC family*2006|0.063|-0.061|-0.259**|-2.213*|0.089|-0.004|-0.162|0.065|2.268|
||(0.148)|(0.078)|(0.105)|(1.227)|(0.079)|(0.094)|(0.310)|(0.230)|(1.955)|
|PC family*2007|0.100*|0.012|-0.217*|-1.815|0.042|0.023|-0.161|-0.020|3.469*|
||(0.061)|(0.085)|(0.125)|(1.441)|(0.085)|(0.079)|(0.317)|(0.237)|(1.977)|
|PC family*2008|0.152**|0.023|-0.225*|-0.666|0.061|0.006|-0.244|-0.275|3.713**|
||(0.068)|(0.043)|(0.117)|(1.230)|(0.101)|(0.113)|(0.347)|(0.277)|(1.797)|
|PC family*2009|0.122*|0.016|-0.194|-2.109*|0.080|-0.077|-0.338|-0.324|4.305**|
||(0.063)|(0.049)|(0.120)|(1.276)|(0.112)|(0.133)|(0.314)|(0.252)|(2.012)|
|Observations|2,800|2,800|2,800|2,800|2,800|2,800|2,800|2,800|2,800|
|Industries|200|200|200|200|200|200|200|200|200|
|R-squared|0.550|0.138|0.098|0.093|0.128|0.098|0.279|0.934|0.318|

_Note_ : Table reports results of estimation of specification (3) for the dependent variables specified. PCM=price cost margin, PE=profit elasticity, HHI=Herfindahl index of market concentration, MS4=cumulative market share of 4 largest firms, lnN=natural logarithm of the number of firms, lnP=natural logarithm of price, Z is a summary competition index. PC family measures the aggregate Suharto-era market share of Suharto family firms (the average of their aggregate market share in 1996 and 1997). The sample period spans 1993–96 and 2000– 03. All specifications include industry and year fixed effects and industry controls interacted with year dummies. Industry controls include imports, exports, the cumulative market shares of state-owned and foreign-owned firms, entry regulation, dependence on external finance, and asset tangibility. Appendix A defines all the variables. Standard errors are clustered at the industry level and presented in parentheses. * indicates significance at the 10 percent level, ** - at the 5 percent level, and *** - at the 1 percent level.

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