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Making Better Use of Business Survey Data: Thoughts on Overcoming the Anchoring and Nested Data Problems in Interpreting Business Survey Results
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Edmund Malesky
29
Figure 3: Exploration Cross-Level Interaction of FDI and Percentage of State Ownership in Firm
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FDI Stock per Capita
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Low State Ownership
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Within level interactions:In the latter portion of table 5, an interaction term between FDI and initial conditions is added. This variable proves significant, indicating that FDI has a stronger impact on governance improvement when initial conditions are best. To better explore the extent of this interaction, Ifollow the same method, dividing the initial conditions into low, medium, and high.
bureaucracy
LOW-IC
= .0006(FDI) + .6445
bureaucracy
MED-IC
= .001235(FDI) + .6114
bureaucracy
HIGH-IC
= .001849(FDI) + .5783
As can be seen in figure 3, all provinces have similar intercepts, but the FDI has a much large impact on provinces with auspicious initial conditions. FDI has a moderate impact on provinces with medium initial conditions and only a marginal impact on provinces with low initial conditions.
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| | Authors: Malesky, Edmund. |
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Edmund Malesky
29
Figure 3: Exploration Cross-Level Interaction of FDI and Percentage of State Ownership in Firm
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
0
200
400
600
800
1000
1200
1400
FDI Stock per Capita
P
e
r
c
e
p
t
i
o
n
s
o
f
B
u
r
e
a
u
c
r
a
c
y
Low State Ownership
Medium State Ownership
High State Ownership
Within level interactions:
In the latter portion of table 5, an interaction term between FDI and initial conditions is added.
This variable proves significant, indicating that FDI has a stronger impact on governance
improvement when initial conditions are best. To better explore the extent of this interaction, I
follow the same method, dividing the initial conditions into low, medium, and high.
bureaucracy
LOW-IC
= .0006(FDI) + .6445
bureaucracy
MED-IC
= .001235(FDI) + .6114
bureaucracy
HIGH-IC
= .001849(FDI) + .5783
As can be seen in figure 3, all provinces have similar intercepts, but the FDI has a much large
impact on provinces with auspicious initial conditions. FDI has a moderate impact on provinces
with medium initial conditions and only a marginal impact on provinces with low initial
conditions.
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