|Variable|Definition|Source|
|---|---|---|
|Number of establishments|The number of separate operating facilities of a firm.|Investment Climate Survey|
|Age|Age is the year of the survey (2000) - year established|Investment Climate Survey|
|Corporations|Corporations is a dummy variable that takes the value 1 if the firm is organized as a corporation and 0 if<br>the firm is organized as a Cooperative, Sole Proprietorship or Partnership or some other legal form.<br>Capacity Utilization Dummies consist of three dummies corresponding to the establishment’s average<br>capacity utilization levels below 50%, between 50% and 80% and above 80%, over the last year. Capacity<br>utilization is defined as the amount of output actually produced relative to the maximum amount that could|Investment Climate Survey|
|CapacityUtilization Dummies|<br>beproduced with the firm’s existingmachineryand equipment and regular shifts.|Investment Climate Survey|
|**_Competition_**|||
||Number of competitors is the total number of competitors in the domestic market that are private domestic||
|Number of Competitors|enterprises, state-owned enterprises or foreign-owned enterprises.|Investment Climate Survey|
|Percentage of sales sold|||
|<br>domestically|Percentage of establishment sales that are sold in the domestic market rather than being exported.<br>Considering the main product line or main line of services and comparing the production process with that<br>of the firm’s closest competitor, the following best summarizes the firm’s position about its technology:|Investment Climate Survey|
|Firm's technology compared to<br>competitor|Less advanced than that of its main competitor (1); About the same as that of its main competitor (2); More<br>advanced than that of its main competitor|Investment Climate Survey|
|Does the firm have a foreign<br>competitor?|Dummy variable that takes the value 1 if over the last year, in the company’s main product line, the firm<br>had at least one foreign owned firm as a competitor.|Investment Climate Survey|
|Does the firm have a state<br>competitor?|Dummy variable that takes the value 1 if over the last year, in the company’s main product line, the firm<br>had at least one state owned firm as a competitor.|Investment Climate Survey|
|Foreign Competition had greatest<br>influence to reduce production|Dummy variable that takes value 1 if foreign competition had the greatest influence on the firm to reduce<br>production costs of existing products and services and 0 if greatest influence instead was domestic||
|costs<br>Foreign Competition had greatest<br>influence to develop new<br>products|competition, customers, creditors, shareholders or government agencies.<br>Dummy variable that takes value 1 if foreign competition had the greatest influence on the firm to develop<br>new products or services and markets and 0 if the greatest influence was domestic competition, customers,<br>creditors,shareholders orgovernment agencies instead.|Investment Climate Survey<br>Investment Climate Survey|
|**_Human Capital_**||Investment Climate Survey|
|Top Mgr's total years of<br>experience|How many years of experience working in this sector did the top manager have before running this<br>establishment?|Investment Climate Survey|
|Mid-level experience|Dummy variable that takes the value 1 if the top manager has had between 3-10 years of experience<br>working in this sector before running the establishment|Investment Climate Survey|
|Highly experienced|Dummy variable that takes the value 1 if the top manager has had more than 10 years of experience<br>working in this sector before running the establishment|Investment Climate Survey|
|Skilled foreign workers|Percentage of permanent skilled workers that are foreign nationals|Investment Climate Survey|

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