# **Table I**

## **Descriptive Statistics for U.S. Multinational Activity in Reforming Countries**

The top panel provides descriptive statistics for the data obtained from BEA surveys and from WIPO. Intrafirm royalty payments are royalty payments made by affiliates to their parents for the sale or use of intangible assets and like the other financial data are measured in thousands of dollars. Parent R&D Expenditures are the R&D expenditures of the domestic operations of the parent. In years for which these data are unavailable, R&D expenditures for consolidated parent companies from COMPUSTAT are used. Parent System Sales are the total sales of the parent and its affiliates. Arms Length Royalty Payments are royalty payments made by unaffiliated foreign persons to U.S. persons that may or may not be parents of multinationals. The Number of Non-Resident Patent Filings and the Number of Resident Patent Filings are counts of patent applications by non-residents and residents in a particular country and year. The bottom panel provides descriptive statistics for the country level control variables that are used in the analysis. The Difference of Host Country Tax Rate and US Tax Rate is the difference between the corporate income tax rate in the host country and the US corporate income tax rate. The Host Country Tax Rate and the Host Country Withholding Tax Rate are annual median tax rates paid by affiliates in a host country. Host Country Inward FDI Restrictions is a dummy equal to one when inward FDI restrictions exist, and it is drawn from Brune (2001). Host Country Trade Openness is the index of constant price openness taken from Heston, Summers, and Aten (2002). The Log of Host Country GDP per capita and the Log of Host Country FDI are derived from data provided in the World Bank World Development Indicators (2003).

|||Benchmar|k Years||
|---|---|---|---|---|
||1982|1989|1994|1999|
|Number of Affiliates|3,275|3,524|4,235|5,026|
|Number of Parents|803|875|1,069|1,090|
|Intrafirm Royalty Payments|||||
|Mean|182|631|1,036|1,087|
|Standard Deviation|2,567|14,986|16,092|15,938|
|R&D Expenditures|||||
|Mean|136|478|555|644|
|Standard Deviation|1,001|10,320|4,753|7,070|
|Sales|||||
|Mean|63,383|87,034|98,460|114,191|
|Standard Deviation|328,242|497,225|555,079|493,295|
|Parent R&D Expenditures|||||
|Mean|82,933|84,282|75,505|97,435|
|Standard Deviation|285,963|364,134|345,105|399,608|
|Parent System Sales|||||
|Mean|3,349,773|4,013,461|4,293,810|6,146,036|
|Standard Deviation|9,728,727|11,648,800|13,307,540|17,628,410|
|Arms Length Royalty Payments|||||
|Mean|na|48|75|122|
|Standard Deviation|na|1,562|2,503|4,719|
|Number of Non-Resident Patent Filings|||||
|Mean|5,992|11,022|20,606|58,572|
|Standard Deviation|7,955|13,722|21,597|44,470|
|Number of Resident Patent Filings|||||
|Mean|27,183|33,511|36,673|44,024|
|Standard Deviation|74,236|99,849|100,010|112,760|
|**_Descriptive Statistics for all Affiliate Years_**||Mean|St. Dev||
|Difference of Host Country Tax Rate and US Tax Rate||-0.0268|0.1328||
|<br>Host Country Withholding Tax Rate||0.0670|0.0823||
|Host Country Inward FDI Restrictions||0.0778|0.2678||
|Host Country Trade Openness||35.1122|23.5311||
|Log of Host Country GDP per Capita||9.0308|0.6962||
|Log of Host Country FDI||21.1733|1.6761||

44