Table 5
Probability of entering and exiting export markets (marginal impact)

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Probability of entering and exiting export markets (marginal impact)
  Entry Exit
Specification (1) Specification (2) Specification (1) Specification (2)
  estimate standard error estimate standard error estimate standard error estimate standard error
Marginal effect of interaction terms  
Average tariff changes × relative labour productivity -0.024 ** 0.009 0.034 ** 0.017
Average tariff changes × relative employment -0.022 ** 0.005 0.068 ** 0.033
Canadian tariff changes × relative labour productivity -0.013 ** 0.006 0.019 0.022
Canadian tariff changes × relative employment -0.001 0.003 0.056 ** 0.022
US tariff changes × relative labour productivity -0.015 0.010 0.014 0.039
US tariff changes × relative employment -0.038 ** 0.007 -0.004 0.033
Real exchange rate changes × relative labour productivity 0.003 * 0.002 0.003 0.002 0.004 0.004 0.004 0.004
Real exchange rate changes × relative employment -0.007 ** 0.001 -0.007 ** 0.001 0.010 ** 0.005 0.010 ** 0.005
Overall marginal impact  
Average tariff changes -0.007 0.007 -0.004 0.023
Canadian tariff changes -0.009 * 0.005 0.012 0.016
U.S tariff changes 0.009 0.010 -0.029 0.026
U.S/Canada real exchange rate changes -0.010 ** 0.002 -0.010 ** 0.002 0.012 ** 0.004 0.011 ** 0.004
Relative labour productivity 0.031 ** 0.003 0.032 ** 0.003 -0.041 ** 0.008 -0.041 ** 0.008
Relative employment 0.043 ** 0.002 0.043 ** 0.002 -0.106 ** 0.012 -0.107 ** 0.012
Age 0.002 ** 0.000 0.002 ** 0.000 -0.004 ** 0.001 -0.004 ** 0.001
Foreign-control 0.004 0.007 0.003 0.007 -0.071 ** 0.012 -0.071 ** 0.012
Industry real-gross-shipment growth 0.000 0.000 0.000 0.000 -0.001 0.001 -0.001 0.001
Note(s):
** and * significant at the 5 percent and 10 percent levels, respectively. Specification (1) uses average tariff changes between Canada and the United States in the probit regression, while specification (2) uses Canadian tariff changes and U.S. tariff changes. Marginal effects for interaction terms are calculated according to equation (2), and overall marginal impacts according to equation (3). They are based on estimated probit coefficients from Table 11 and evaluated at mean values of covariates.
Source(s):
Authors' calculations.