Table 7
Marginal effects of changes in real exchange rates on plant exit

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Marginal effects of changes in real exchange rates on plant exit
  All plants Non-exporters Exporters Domestic-controlled plants Foreign-controlled plants
  estimate standard error estimate standard error estimate standard error estimate standard error estimate standard error
Marginal effects of real-exchange-rate changes  
After controlling for plant characteristics between groups 0.003 * 0.001 0.001 0.002 0.011 * 0.003 0.002 0.001 0.007 * 0.002
Difference of being an exporter or a foreign-controlled plant         0.009 * 0.003     0.005 ** 0.003
Allowing plant characteristics to vary between groups 0.003 * 0.001 0.002 0.001 0.008 * 0.002 0.002 0.001 0.005 * 0.002
Difference of being an exporter or a foreign-controlled plant         0.007 * 0.002     0.004 0.002
By relative labour productivity quartile  
Quartile 1 (low) 0.008 * 0.003 0.003 0.003 0.020 * 0.006 0.004 0.004 0.018 * 0.006
Quartile 2 1 0.005 * 0.002 0.002 0.002 0.016 * 0.005 0.002 0.002 0.010 * 0.004
Quartile 3 1 0.003 * 0.001 0.002 0.001 0.011 * 0.005 0.001 0.001 0.006 0.004
Quartile 4 (high) 1 -0.005 0.004 -0.001 0.005 -0.006 0.006 -0.002 0.005 -0.011 ** 0.006
By relative employment quartile  
Quartile 1 (low) -0.002 0.004 0.001 0.006 0.004 0.006 -0.003 0.005 0.002 0.005
Quartile 2 -0.001 0.003 0.001 0.004 0.004 0.006 -0.002 0.004 0.003 0.004
Quartile 3 0.001 0.001 0.002 0.002 0.004 0.005 0.000 0.002 0.003 0.003
Quartile 4 (high) 0.013 0.009 0.004 0.013 0.006 0.009 0.012 0.012 0.005 0.010
By age quartile  
Quartile 1 (low) 0.007 ** 0.004 0.007 ** 0.004 0.005 0.012 0.006 0.004 0.009 0.012
Quartile 2 0.005 * 0.002 0.004 ** 0.002 0.005 0.008 0.004 ** 0.002 0.007 0.007
Quartile 3 0.001 0.002 -0.001 0.003 0.005 0.005 -0.001 0.002 0.003 0.005
Quartile 4 (high) 0.000 0.003 -0.002 0.004 0.005 0.008 -0.003 0.004 0.002 0.007
Marginal interaction effects  
Changes in real exchange rates × relative productivity -0.003 * 0.001 -0.001 0.002 -0.005 * 0.002 -0.002 0.002 -0.004 * 0.001
Changes in real exchange rates × relative employment 0.002 0.002 0.0003 0.003 -0.00004 0.001 0.002 0.002 0.0002 0.001
Changes in real exchange rates × age -0.0003 0.0003 -0.0004 0.0003 -0.00005 0.0005 -0.0004 0.0003 -0.0002 0.0006
*
p<0.05
**
p<0.1
1.
For all plants, exporters and foreign-controlled plants in quartiles 2, 3 and 4, the differences between the adjacent quartile groups are statistically significant at 5%.
Note(s):
We calculate marginal effects on the basis of equations (4)-(6), using probit coefficients in Table 5 and 'nlcom' command in STATA. Marginal effects by quartiles are evaluated at the common two-digit industry mean values of all variables, except the variable of interest, whose mean values of the quartile-specific industry mean values are used. We evaluate marginal effects by groups at common two-digit industry mean values of relative productivity, relative employment, and age (thus controlling for plant characteristics between groups), and at the group-specific two-digit industry mean values of relative productivity, employment, and age (thus allowing plant characteristics to vary between groups). In both cases, common two-digit industry mean values of tariff and real-exchange-rate changes are used.