Introduction
Theory and Hypotheses
Empirical Setting
Data and Variables
i → j
| AT | AU | BE | BG | BR | CA | CH | CN | DE | DK | ES | FI | FR | GB | HK | IE | IL | IN | IT | JP | KR | NL | NO | PL | RU | SE | SG | US | ∑j
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
AT | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 6 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9 | |
AU | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59 | 62 | |
BE | 2 | 0 | 0 | 0 | 0 | 15 | 0 | 21 | 2 | 1 | 1 | 42 | 45 | 0 | 11 | 9 | 0 | 1 | 0 | 0 | 30 | 0 | 0 | 0 | 1 | 5 | 92 | 278 | |
BG | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
BR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 6 | |
CA | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 1 | 6 | 16 | 0 | 5 | 2 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 2 | 1 | 530 | 572 | |
CH | 10 | 4 | 8 | 0 | 0 | 13 | 6 | 126 | 13 | 4 | 3 | 20 | 57 | 0 | 13 | 6 | 2 | 7 | 0 | 1 | 11 | 4 | 0 | 0 | 7 | 5 | 378 | 698 | |
CN | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 3 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 6 | 40 | 52 | |
DE | 43 | 3 | 8 | 0 | 3 | 22 | 56 | 5 | 13 | 5 | 5 | 50 | 100 | 0 | 9 | 40 | 2 | 7 | 0 | 1 | 25 | 2 | 14 | 7 | 7 | 2 | 410 | 839 | |
DK | 2 | 0 | 0 | 0 | 0 | 4 | 11 | 0 | 16 | 0 | 12 | 7 | 25 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 3 | 1 | 0 | 0 | 34 | 0 | 99 | 216 | |
ES | 0 | 0 | 0 | 0 | 7 | 2 | 3 | 0 | 4 | 0 | 0 | 4 | 12 | 0 | 2 | 1 | 1 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | 24 | 64 | |
FI | 2 | 0 | 0 | 0 | 0 | 4 | 1 | 0 | 1 | 8 | 1 | 0 | 3 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 1 | 1 | 0 | 26 | 0 | 25 | 75 | |
FR | 7 | 0 | 40 | 0 | 0 | 18 | 62 | 5 | 67 | 12 | 9 | 5 | 102 | 0 | 10 | 9 | 3 | 2 | 1 | 0 | 23 | 2 | 0 | 2 | 12 | 1 | 219 | 611 | |
GB | 19 | 3 | 22 | 1 | 2 | 18 | 41 | 9 | 200 | 28 | 56 | 44 | 192 | 1 | 66 | 38 | 4 | 31 | 3 | 0 | 37 | 13 | 1 | 4 | 70 | 8 | 927 | 1838 | |
HK | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 28 | 1 | 0 | 0 | 0 | 0 | 15 | 0 | 4 | 9 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 42 | 105 | |
IE | 2 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 0 | 0 | 1 | 0 | 1 | 43 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26 | 76 | |
IL | 0 | 0 | 0 | 0 | 1 | 5 | 0 | 6 | 0 | 0 | 0 | 0 | 6 | 38 | 0 | 3 | 1 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 527 | 589 | |
IN | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21 | 23 | |
IT | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 6 | 2 | 14 | 27 | 0 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 15 | 80 | |
JP | 0 | 2 | 2 | 0 | 0 | 2 | 2 | 27 | 2 | 1 | 0 | 0 | 14 | 30 | 1 | 1 | 5 | 1 | 1 | 3 | 1 | 0 | 0 | 0 | 6 | 6 | 231 | 338 | |
KR | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 13 | |
NL | 10 | 0 | 38 | 80 | 0 | 8 | 16 | 0 | 58 | 15 | 5 | 7 | 30 | 78 | 1 | 6 | 8 | 0 | 5 | 0 | 0 | 3 | 0 | 0 | 8 | 0 | 102 | 478 | |
NO | 0 | 0 | 0 | 0 | 0 | 0 | 12 | 0 | 2 | 6 | 0 | 0 | 1 | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22 | 0 | 27 | 90 | |
PL | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | |
RU | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9 | 0 | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 35 | 47 | |
SE | 0 | 1 | 0 | 0 | 1 | 1 | 8 | 2 | 7 | 25 | 2 | 26 | 10 | 16 | 0 | 0 | 2 | 1 | 1 | 0 | 0 | 0 | 28 | 0 | 1 | 0 | 85 | 217 | |
SG | 0 | 3 | 1 | 0 | 0 | 3 | 3 | 23 | 3 | 5 | 0 | 0 | 10 | 14 | 0 | 5 | 2 | 7 | 0 | 12 | 0 | 1 | 0 | 0 | 0 | 1 | 103 | 196 | |
US | 13 | 30 | 22 | 1 | 48 | 485 | 63 | 347 | 144 | 25 | 28 | 35 | 127 | 625 | 21 | 69 | 351 | 236 | 13 | 28 | 17 | 65 | 9 | 8 | 17 | 64 | 24 | 2915 | |
∑i
| 112 | 46 | 141 | 82 | 62 | 594 | 296 | 460 | 675 | 153 | 118 | 143 | 536 | 1274 | 28 | 201 | 487 | 267 | 69 | 44 | 24 | 206 | 63 | 24 | 31 | 262 | 62 | 4028 | 10,488 |
AT | BE | CH | DE | DK | ES | FI | FR | GB | GR | IE | IT | JP | NL | NO | PT | SE | US | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Domestic investments | ||||||||||||||||||
Volume | 400 | 669 | 748 | 6,014 | 799 | 1420 | 697 | 0 | 11,823 | 15 | 582 | 690 | 352 | 1205 | 292 | 43 | 1498 | 126,961 |
Number | 80 | 155 | 136 | 1145 | 166 | 309.0 | 167 | 0 | 2433 | 4 | 201 | 86 | 151 | 224 | 57 | 12 | 362 | 11,794 |
Gross cross-border inflow (from all sample countries) | ||||||||||||||||||
Volume | 105 | 363 | 647 | 1444 | 344 | 232 | 241 | 0 | 3,593 | 0 | 356 | 226 | 18 | 625 | 166 | 16 | 556 | 10,020 |
Number | 26 | 98 | 175 | 427 | 105 | 47 | 81 | 0 | 763 | 0 | 137 | 34 | 14 | 117 | 33 | 8 | 182 | 2402 |
Gross cross-border outflow (to all sample countries) | ||||||||||||||||||
Volume | 22 | 576 | 1905 | 2198 | 465 | 104 | 170 | 1,270 | 4,878 | 0 | 151 | 143 | 1616 | 870 | 229 | 12 | 538 | 3801 |
Number | 9 | 185 | 487 | 552 | 138 | 26 | 62 | 367 | 1152 | 0 | 51 | 54 | 367 | 286 | 91 | 6 | 163 | 653 |
Dependent Variables
Independent Variables
Geographical Distance
Cultural Distance
Lingual Distance
Institutional Distance and Quality of Institutions
Institutional Trust
Relational Trust
Trade Flow
Control Variables
Foreign VC Characteristics
Descriptive Statistics
Variable | Description | Source |
---|---|---|
Macro models | ||
Dependent variable | ||
\(VC_{i \to j}^{t}\)
| Number of venture capital deals in destination country j with participating venture capitalists from source country i
| Zephyr |
\(VC \, prop_{{_{i \to j} }}^{t}\)
| Venture capital propensity between source country i and destination country j
| Zephyr |
Distance | ||
dist geo
i,j
| Natural logarithm of the distance in kilometers between the source country j and the destination country i, adjusted to population density | CEPII |
dist cult
i,j
| Cultural distance between source country j, as in equation \ref{eq:cd} | Hofstede et al. (2010) |
same lang
i,j
| Dummy, indicating a shared language spoken by at least ten percent of the population in source j and the destination country i
| CEPII |
Trust and relationship | ||
trust
i
| Percentage of citizens of the destination country i who replied to the question: “Generally speaking, would you say that most people can be trusted?” with “Yes” | World Value Survey |
\(VC \, synd_{i \to j}^{t}\)
| Share of deals carried out in syndication between foreign venture capitalists from source country i with domestic ones in destination country j to all investments from source country i in destination country j
| Zephyr |
\(trade_{i \to j}^{t - 1}\)
| Trade flow relative to GDP between Source country i and destination country j
| OECD STAN database |
Institutions | ||
same legal
i,j
| Dummy variable, indicating the same origin of the legal system in source i and destination country j (categorized in French, German, English, and Scandinavian) | La Porta et al. (1998) |
\(cpi_{j}^{t}\)
| Corruption Perception Index of destination country j, adjusted to 0–1 scale, where high values indicate low levels of corruption | Transparency International |
inst. stab
j
t
| Institutional stability of destination country j, standardized on −2.5 to 2.5 scale, where high values indicate high instability | Kaufmann et al. (2010) |
Controls | ||
\(gdp_{j}^{t - 1}\)
| GDP of destination country j, constant 2005 USD | Worldbank |
\(gdp \, cap_{j}^{t - 1}\)
| GDP per capita destination country j, constant 2005 USD | Worldbank |
\(gdp \, growth_{j}^{t - 1}\)
| GDP growth of destination country j in percentage | Worldbank |
\(capitalization_{j}^{t - 1}\)
| Ratio of market capitalization of listed companies to GDP in destination country j
| Worldbank |
\(stocks_{j}^{t - 1}\)
| Ratio of stocks traded to GDP in destination country j
| Worldbank |
Micro models | ||
Dependent variable | ||
VC host
| Dummy variable, indicating whether or not the cross-border VC deal also includes a domestic VC | Zephyr |
Dyad | ||
dist geo
mean(i,j)
| Mean of geographical distance between destination country and country of residence of the foreign VCs | CEPII |
dist cult
mean(i,j)
| Mean of cultural distance between destination country and country of residence of the foreign VCs | Hofstede et al. (2010) |
legal
max(i,j)
| Dummy variable, indicating whether or not at least one of the foreign VCs comes from a country with the same legal tradition | La Porta et al. (1998) |
lang
max(i,j)
| Dummy variable, indicating whether or not at least one of the foreign VCs comes from a country with the same language | CEPII |
Acquiring foreign VCs | ||
\({{exp\;sector}}_{{{ {max} }({\text{k}})}}^{t}\)
| Maximum of the participating foreign VCs experience in the PC sector | Zephyr |
\(exp\;country_{{{ {max} }(k)}}^{t}\)
| Maximum of the participating foreign VCs experience in the DC | Zephyr |
\(exp\;targ et_{{max} (k)}^{t}\)
| Maximum of the participating foreign VCs experience with the same PC | Zephyr |
Variable |
N
| Mean | SD | Min | Max |
---|---|---|---|---|---|
Dependent variable | |||||
\(VC_{i \, \to j}^{t}\)
| 70,571 | 0.151 | 1.943 | 0.000 | 104.000 |
\(VC\;prop_{i \, \to j}^{t}\)
| 70,571 | 0.006 | 0.158 | 0.000 | 29.920 |
Distance | |||||
dist geo
i,j
| 68,597 | 8.586 | 0.918 | 3.835 | 9.886 |
dist cult
i,j
| 36,414 | 0.060 | 0.023 | 0.006 | 0.150 |
same legal
i,j
| 70,571 | 0.225 | 0.418 | 0.000 | 1.000 |
same lang
i,j
| 68,597 | 0.146 | 0.353 | 0.000 | 1.000 |
Trust and relationship | |||||
trust
i
| 63,711 | 0.063 | 0.314 | −0.427 | 1.000 |
\(VC\;synd_{i \, \to j}^{t}\)
| 70,571 | 0.015 | 0.113 | 0.000 | 1.000 |
\(trade_{i \, \to j}^{t}\)
| 31,819 | 0.002 | 0.023 | 0.000 | 1.000 |
Institutions | |||||
\(cpi_{j}^{t}\)
| 66,226 | 0.559 | 0.227 | 0.150 | 1.000 |
\(inst. \,stab_{j}^{t}\)
| 68,605 | 0.260 | 0.921 | −2.812 | 1.668 |
Controls | |||||
\(gdp_{j}^{t - 1}\) * | 68,586 | 0.045 | 0.118 | 0.000 | 1.000 |
\(gdp\;cap_{j}^{t - 1}\) * | 68,587 | 0.178 | 0.180 | 0.002 | 1.000 |
\(gdp\;growth_{j}^{t - 1}\) * | 68,516 | 0.893 | 0.103 | 0.000 | 1.000 |
\(capitalization_{j}^{t - 1}\) * | 66,570 | 0.110 | 0.115 | 0.000 | 1.000 |
\(stocks_{j}^{t - 1}\) * | 66,640 | 0.062 | 0.102 | 0.000 | 1.000 |
Variable |
N
| Mean | SD | Min | Max |
---|---|---|---|---|---|
Dependent variable | |||||
deal host
| 7349 | 0.599 | 0.490 | 0.000 | 1.000 |
Destination country | |||||
\(gdp_{j}^{t}\)
| 7346 | 0.438 | 0.400 | 0.000 | 1.000 |
\(gdp\;growth_{j}^{t - 1}\)
| 7346 | 2.491 | 2.757 | −14.072 | 14.781 |
\(capitalization_{j}^{t - 1}\)
| 7344 | 107.068 | 46.252 | −19.815 | 549.423 |
\(cpi_{j}^{t}\)
| 7340 | 0.725 | 0.146 | 0.17 | 1.000 |
\(trust_{j}^{t}\)
| 7331 | 0.885 | 0.821 | −1.478 | 3.459 |
Dyad | |||||
dist geo
mean(i,j)
| 7324 | 8.158 | 1.144 | 5.087 | 9.833 |
dist cult
mean(i,j)
| 7251 | 0.040 | 0.024 | 0.006 | 0.130 |
legal
max(i,j)
| 7325 | 0.541 | 0.498 | 0.000 | 1.000 |
lang
max(i,j)
| 7324 | 0.540 | 0.498 | 0.000 | 1.000 |
Acquiring foreign VCs | |||||
\(exp\;sector_{{max} (k)}^{t}\)
| 7349 | 21.607 | 38.652 | 1.000 | 270.000 |
\(exp\;country_{{{ {max} }(k)}}^{t}\)
| 7349 | 9.106 | 14.435 | 1.000 | 111.000 |
\(exp\;targ et_{{max} (k)}^{t}\)
| 7349 | 1.262 | 0.545 | 1.000 | 5.000 |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | ||
---|---|---|---|---|---|---|---|---|---|
(1) |
\(VC\;count_{i \, \to j}^{t}\)
| 1.0000 | |||||||
(2) |
\(VC\;prop_{i \, \to j}^{t}\)
| 0.2412* | 1.0000 | ||||||
(3) |
dist cult
i,j
| −0.0878* | −0.0503* | 1.0000 | |||||
(4) |
dist geo
i,j
| −0.0036 | −0.0384* | 0.1871* | 1.0000 | ||||
(5) |
dist tech
i,j
| −0.0328* | 0.0094 | 0.0493* | 0.0374* | 1.0000 | |||
(6) |
\(trade_{i,j}^{t}\)
| 0.0283* | 0.0453* | −0.0913* | −0.1258* | 0.0049 | 1.0000 | ||
(7) |
same legal
i,j
| 0.0612* | 0.0417* | −0.2471* | −0.0806* | 0.0064 | 0.0418* | 1.0000 | |
(8) |
same lang
i,j
| 0.1058* | 0.0485* | −0.1593* | 0.015 | −0.0018 | 0.1569* | 0.2385* | 1.0000 |
(9) |
\(VC \, synd_{{_{i \, \to j} }}^{t}\)
| 0.2059* | 0.1641* | −0.1005* | −0.1581* | −0.0613* | 0.0477* | 0.0574* | 0.1452* |
(10) |
trust
j
| 0.0283* | 0.0304* | 0.1531* | −0.0907* | 0.0035 | 0.0115 | −0.1168* | 0.0008 |
(11) |
\(cpi_{j}^{t}\)
| 0.0350* | 0.0012 | 0.0824* | −0.1505* | 0.0003 | −0.0073 | −0.0697* | 0.0742* |
(12) |
\(gdp \, growth_{j}^{t}\)
| −0.0159 | −0.0012 | 0.0165 | 0.1068* | −0.001 | 0.0322* | −0.0033 | 0.0234* |
(13) |
\(capitalization_{j}^{t}\)
| 0.0321* | 0.0132 | 0.0308* | 0.0456* | −0.0059 | 0.0687* | −0.0125 | 0.1422* |
(14) |
\(stocks_{j}^{t}\)
| 0.0882* | 0.0581* | 0.0377* | 0.0219* | −0.002 | 0.0599* | −0.0102 | 0.1308* |
(15) |
\(gdp_{j}^{t}\)
| 0.2465* | 0.1402* | −0.0012 | 0.0761* | 0.0076 | 0.0192* | 0.0224* | 0.0848* |
(16) |
\(Inst \, stab_{j}^{t}\)
| 0.0013 | −0.0132 | 0.0369* | −0.1783* | −0.0049 | −0.0052 | −0.0673* | −0.0468* |
(9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | ||
---|---|---|---|---|---|---|---|---|---|
(9) |
\(VC\;synd_{i \, \to j}^{t}\)
| 1.0000 | |||||||
(10) |
trust
j
| 0.1084* | 1.0000 | ||||||
(11) |
\(cpi_{j}^{t}\)
| 0.1582* | 0.6501* | 1.0000 | |||||
(12) |
\(gdp \, growth_{j}^{t}\)
| −0.0751* | −0.0967* | −0.2901* | 1.0000 | ||||
(13) |
\(capitalization_{j}^{t}\)
| 0.0744* | 0.2278* | 0.4028* | 0.1375* | 1.0000 | |||
(14) |
\(stocks_{j}^{t}\)
| 0.1714* | 0.2981* | 0.3481* | 0.0237* | 0.7248* | 1.0000 | ||
(15) |
\(gdp_{j}^{t}\)
| 0.3047* | 0.1052* | 0.0700* | −0.0786* | 0.0641* | 0.3500* | 1.0000 | |
(16) |
\(Inst \, stab_{j}^{t}\)
| 0.0519* | 0.5465* | 0.7755* | −0.2734* | 0.2430* | 0.1850* | −0.0280* | 1.0000 |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | ||
---|---|---|---|---|---|---|---|---|---|
(1) |
deal host
| 1.0000 | |||||||
(2) |
\(gdp_{j}^{t}\)
| 0.3144* | 1.0000 | ||||||
(3) |
\(gdp\;cap_{j}^{t}\)
| 0.2667* | 0.4751* | 1.0000 | |||||
(4) |
\(gdp\;growth_{j}^{t}\)
| −0.1386* | −0.1139* | −0.4336* | 1.0000 | ||||
(5) |
\(capitalization_{j}^{t}\)
| 0.1715* | 0.3327* | 0.3288* | 0.0980* | 1.0000 | |||
(6) |
\(cpi_{j}^{t}\)
| 0.2441* | 0.0760* | 0.6577* | −0.4051* | 0.3978* | 1.0000 | ||
(7) |
trust
j
| 0.0397* | 0.1050* | 0.2448* | 0.1830* | 0.1511* | 0.2586* | 1.0000 | |
(8) |
dist geo
mean(i,j)
| −0.0002 | 0.4607* | −0.0465* | 0.1908* | 0.1384* | −0.3004* | −0.0316* | 1.0000 |
(9) |
dist cult
mean(i,j)
| −0.1749* | −0.1897* | −0.3067* | 0.1823* | −0.1970* | −0.3176* | −0.0017 | 0.1571* |
(1) |
legal
max(i,j)
| 0.0931* | 0.0681* | 0.1173* | −0.0443* | 0.1248* | 0.1113* | −0.0865* | 0.0151 |
(11) |
lang
max(i,j)
| 0.0699* | 0.1082* | 0.0995* | −0.003 | 0.1715* | 0.0494* | −0.1603* | 0.0991* |
(12) |
\(exp\;sec tor_{{max} (k)}^{t}\)
| −0.0418* | −0.1119* | −0.1242* | 0.0096 | −0.0970* | −0.0959* | −0.0524* | 0.0337* |
(13) |
\(exp\;country_{{max} (k)}^{t}\)
| 0.1768* | 0.3096* | 0.0886* | −0.0612* | 0.0459* | −0.0093 | −0.011 | 0.0913* |
(14) |
\(exp\;targ et_{{max} (k)}^{t}\)
| 0.1577* | 0.0512* | 0.0838* | −0.0509* | 0.0302* | 0.0618* | −0.0036 | −0.0514* |
(9) | (10) | (11) | (12) | (13) | (14) | ||||
---|---|---|---|---|---|---|---|---|---|
(9) |
dist geo
mean(i,j)
| 1.0000 | |||||||
(10) |
dist cult
mean(i,j)
| −0.5308* | 1.0000 | ||||||
(11) |
legal
max(i,j)
| −0.4955* | 0.8125* | 1.0000 | |||||
(12) |
lang
max(i,j)
| −0.0324* | 0.0295 | 0.0550* | 1.0000 | ||||
(13) |
\(exp\;sec tor_{{max} (k)}^{t}\)
| −0.1990* | 0.0792* | 0.0849* | 0.4169* | 1.0000 | |||
(14) |
\(exp\;country_{{max} (k)}^{t}\)
| −0.1093* | 0.0747* | 0.0722* | 0.0942* | 0.1871* | 1.0000 |
Model Specification
Results and Discussion
Foreign only | Foreign and domestic | |||
---|---|---|---|---|
(1) | (2) | (3) | (4) | |
Path dependency | ||||
\(VC\;synd_{i \, \to j}^{t - 1}\)
| 0.300 (0.122)* | 0.299 (0.122)* | 0.628 (0.060)*** | 0.628 (0.060)*** |
Distance | ||||
dist geo
i→j
| −0.007 (0.003)** | −0.007 (0.003)** | −0.002 (0.001)* | −0.002 (0.001)* |
dist cult
i→j
| −0.288 (0.096)** | −0.318 (0.099)** | −0.072 (0.030)* | −0.075 (0.030)* |
same legal
i→j
| 0.012 (0.005)* | 0.013 (0.005)** | 0.005 (0.002)** | 0.005 (0.002)** |
same lang
i→j
| 0.013 (0.008) | 0.013 (0.008) | 0.005 (0.003) | 0.005 (0.003) |
Trust and relationship | ||||
trust
j
| 0.017 (0.000)*** | 0.002 (0.002) | ||
\(trade_{{_{i \to j} }}^{T - 1}\)
| 0.154 (0.191) | 0.148 (0.185) | 0.023 (0.031) | 0.022 (0.030) |
Institutions | ||||
\(cpi_{j}^{t}\)
| 0.018 (0.036) | 0.011 (0.037) | 0.009 (0.016) | 0.009 (0.016) |
\(inst.\;stab_{j}^{t}\)
| −0.003 (0.002) | −0.004 (0.001)* | −0.001 (0.001) | −0.001 (0.001) |
\(\Delta cpi_{j}^{t}\)
| −0.019 (0.027) | −0.022 (0.027) | −0.003 (0.010) | −0.003 (0.010) |
Controls | ||||
\(gdp_{j}^{t - 1}\)
| 0.157 (0.048)**** | 0.160 (0.048)*** | 0.058 (0.016)*** | 0.058 (0.016)*** |
\(\, gdp \, cap_{j}^{t - 1}\)
| 0.146 (0.054)** | 0.139 (0.053)** | 0.052 (0.024)* | 0.051 (0.024)* |
\(gdp \, growth_{j}^{t - 1}\)
| 0.042 (0.018)* | 0.038 (0.017)* | 0.013 (0.010) | 0.013 (0.010) |
\(capitalization_{j}^{t - 1}\)
| 0.039 (0.030) | 0.045 (0.030) | 0.002 (0.008) | 0.003 (0.008) |
\(\Delta \, gdp_{j - 1}^{t - 1}\)
| −0.007 (0.009) | −0.008 (0.009) | −0.001 (0.003) | −0.002 (0.003) |
\(\Delta \, gdp \, cap_{j - 1}^{t - 1}\)
| −0.126 (0.047)** | −0.127 (0.047)** | −0.045 (0.022)* | −0.046 (0.022)* |
\(\Delta \, gdp \, growth_{j - 1}^{t - 1}\)
| −0.028 (0.014)* | −0.029 (0.014) | −0.008 (0.006) | −0.008 (0.006) |
\(\Delta \, capitalization_{J - 1}^{t - 1}\)
| 0.064 (0.029)* | 0.057 (0.029)* | 0.014 (0.005)** | 0.013 (0.005)** |
λ (imr) | 0.005 (0.003) | 0.006 (0.003)* | 0.002 (0.001)* | 0.002 (0.001)* |
Year dummies | Yes | Yes | Yes | Yes |
N
| 20,053 | 20,053 | 20,053 | 20,053 |
R
2 (overall) | 0.127 | 0.128 | 0.423 | 0.423 |
R
2 (adjusted) | 0.127 | 0.127 | 0.423 | 0.422 |
Developed DC | Emerging DC | |||||||
---|---|---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
Path dependency | ||||||||
\(VC\;prop_{i \, \to j}^{t - 1}\)
| 0.463 (0.091)*** | 0.456 (0.089)*** | 0.463 (0.091)*** | 0.532 (0.121)*** | 0.162 (0.154) | 0.149 (0.140) | 0.162 (0.154) | 0.088 (0.090) |
Distance | ||||||||
dist geo
i→j
| −0.008 (0.003)*** | −0.006 (0.003)* | −0.008 (0.003)*** | −0.004 (0.002)*** | −0.006 (0.005) | −0.005 (0.005) | −0.006 (0.005) | 0.001 (0.002) |
dist cult
i→j
| −0.360 (0.136)** | −0.317 (0.138)* | −0.361 (0.145)* | −0.069 (0.089) | 0.068 (0.122) | 0.157 (0.147) | 0.068 (0.141) | 0.075 (0.090) |
same legal
i→j
| 0.015 (0.007)* | 0.014 (0.006)* | 0.015 (0.007)* | 0.012 (0.004)** | 0.001 (0.008) | 0.000 (0.007) | 0.001 (0.008) | −0.002 (0.008) |
same lang
i→j
| 0.015 (0.008) | 0.012 (0.008) | 0.015 (0.008) | 0.009 (0.007) | −0.001 (0.008) | −0.010 (0.010) | −0.001 (0.008) | −0.011 (0.010) |
Trust and relationship | ||||||||
trust
j
| 0.001 (0.011) | −0.002 (0.008) | 0.002 (0.000)*** | 0.008 (0.000)*** | ||||
\(VC \, synd_{i \to j}^{t}\)
| 0.075 (0.013)*** | 0.083 (0.011)*** | 0.351 (0.186) | 0.601 (0.357) | ||||
\(trade_{i \to j}^{t - 1}\)
| 0.199 (0.366) | −0.017 (0.357) | 0.199 (0.366) | −0.206 (0.223) | 0.230 (0.221) | 0.212 (0.207) | 0.230 (0.221) | 0.253 (0.241) |
Δtrust
i
−
j
| 0.010 (0.005)* | 0.012 (0.005) | 0.010 (0.007) | 0.013 (0.006)* | 0.024 (0.011)* | 0.020 (0.009) | 0.024 (0.015) | 0.022 (0.012) |
Institutions | ||||||||
\(cpi_{j}^{t}\)
| 0.050 (0.026) | 0.011 (0.030) | 0.048 (0.028) | −0.019 (0.019) | −0.124 (0.101) | −0.177 (0.121) | −0.124 (0.103) | −0.157 (0.099) |
inst. stab_j
t
| −0.010 (0.006) | −0.005 (0.005) | −0.010 (0.005) | −0.009 (0.004)* | 0.002 (0.002) | 0.011 (0.006) | 0.002 (0.003) | 0.015 (0.007)* |
\(\Delta \, cpi_{i - j}^{t}\)
| −0.017 (0.019) | −0.005 (0.020) | −0.017 (0.019) | 0.012 (0.013) | −0.004 (0.045) | 0.009 (0.048) | −0.004 (0.045) | 0.010 (0.036) |
Controls | ||||||||
\(gdp_{j}^{t - 1}\)
| 0.149 (0.046)** | 0.099 (0.047)* | 0.150 (0.047)** | 0.026 (0.005)** | 0.161 (0.078)* | 0.060 (0.105) | 0.161 (0.074)* | 0.023 (0.093) |
\(gdp\;cap_{j}^{t - 1}\)
| 0.105 (0.048)* | 0.107 (0.047)* | 0.104 (0.047)* | 0.102 (0.033)** | 0.298 (0.197) | 0.234 (0.165) | 0.299 (0.209) | 0.132 (0.112) |
\(gdp\;growth_{j}^{t - 1}\)
| 0.046 (0.014)*** | 0.051 (0.014)*** | 0.046 (0.014)*** | 0.038 (0.014)** | 0.044 (0.036) | 0.046 (0.036) | 0.044 (0.037) | 0.063 (0.041) |
\(capitalisation_{j}^{t - 1}\)
| 0.120 (0.082) | 0.108 (0.081) | 0.122 (0.088) | 0.082 (0.050) | 0.153 (0.064)* | 0.176 (0.071)* | 0.153 (0.061)* | 0.145 (0.067)* |
\(stocks_{j}^{t}\)
| −0.107 (0.078) | −0.123 (0.079) | −0.109 (0.083) | −0.099 (0.047)* | −0.142 (0.080) | −0.148 (0.081) | −0.142 (0.075) | −0.148 (0.092) |
\(\Delta \, gdp_{i - j}^{t - 1}\)
| −0.021 (0.019) | 0.002 (0.020) | −0.022 (0.020) | 0.022 (0.011)* | −0.001 (0.010) | 0.025 (0.022) | −0.001 (0.011) | 0.049 (0.028) |
\(\Delta \, gdp \, cap_{i - j}^{t - 1}\)
| −0.101 (0.047)* | −0.102 (0.046)* | −0.101 (0.046)* | −0.094 (0.038)* | −0.065 (0.092) | −0.056 (0.084) | −0.065 (0.093) | −0.041 (0.083) |
\(\Delta \, gdp \, growth_{i - 1}^{t - 1}\)
| −0.044 (0.011)*** | −0.046 (0.011)*** | −0.044 (0.011)*** | −0.040 (0.013)** | −0.027 (0.030) | −0.028 (0.029) | −0.027 (0.030) | −0.041 (0.035) |
\(\Delta \, capitalization_{i - 1}^{t - 1}\)
| −0.156 (0.094) | −0.148 (0.093) | −0.157 (0.096) | −0.084 (0.043) | −0.101 (0.043)* | −0.099 (0.041)* | −0.100 (0.041)* | −0.061 (0.035) |
\(\Delta stocks_{i - 1}^{t - 1}\)
| 0.134 (0.082) | 0.134 (0.082) | 0.134 (0.083) | 0.074 (0.036)* | 0.094 (0.053)* | 0.105 (0.055)* | 0.094 (0.049) | 0.099 (0.056) |
λ (imr) | 0.011 (0.004)* | 0.011 (0.004)* | 0.011 (0.005)* | 0.011 (0.004)* | −0.001 (0.002)* | −0.003 (0.003) | −0.001 (0.003) | −0.012 (0.008) |
Year dummies | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
N
| 11,080 | 11,080 | 11,080 | 11,080 | 8973 | 8973 | 8973 | 8973 |
R
2 (overall) | 0.283 | 0.289 | 0.283 | 0.291 | 0.040 | 0.042 | 0.055 | 0.057 |
R
2 (adjusted) | 0.282 | 0.288 | 0.282 | 0.290 | 0.038 | 0.040 | 0.053 | 0.055 |
All | Developed DC | Emerging DC | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Destination country | ||||||
\(gdp_{j}^{t - 1}\)
| 3.710 (0.502)*** | 3.184 (0.480)*** | 2.736 (0.700)*** | 2.232 (0.645)*** | 3.584 (1.344)** | 3.338 (1.433)* |
\(gdp \, growth_{j}^{t - 1}\)
| −0.040 (0.017)* | −0.027 (0.017) | −0.064 (0.028)* | −0.070 (0.028)* | −0.103 (0.038)** | −0.098 (0.038)** |
\(capitalization_{j}^{t - 1}\)
| 0.003 (0.001)** | 0.002 (0.001)** | 0.006 (0.001)*** | 0.005 (0.001)*** | −0.007 (0.001)*** | −0.007 (0.001)*** |
\(cpi_{j}^{t}\)
| −1.801 (0.375)*** | −0.923 (0.378)* | −2.826 (0.602)*** | −1.369 (0.582)* | 1.138 (1.142) | 1.332 (1.196) |
\(trust_{j}^{t}\)
| −0.069 (0.041) | −0.071 (0.041) | −0.055 (0.068) | −0.077 (0.066) | 0.486 (0.115)*** | 0.477 (0.114)*** |
emerging
j
| −0.783 (0.146)*** | −0.635 (0.143)*** | ||||
Dyad | ||||||
\(dist \, geo_{mean(i,j)}\)
| 0.081 (0.028)** | 0.079 (0.027)** | 0.043 (0.030) | 0.038 (0.029) | 0.418 (0.111)*** | 0.431 (0.115)*** |
\(dist \, cult_{mean(i,j)}\)
| −3.707 (1.384)** | −1.308 (1.422) | −3.460 (1.478)* | −0.891 (1.526) | −2.080 (5.539)*** | −2.390 (5.660)*** |
\(same \, legal_{{max} (i,j)}\)
| 0.273 (0.099)** | 0.270 (0.099)** | 0.327 (0.118)** | 0.306 (0.116)** | 0.633 (0.230)** | 0.587 (0.232)* |
\(same \, lang_{{max} (i,j)}\)
| −0.206 (0.099)* | −0.175 (0.099) | −0.310 (0.116)** | −0.269 (0.114)* | −0.224 (0.244) | −0.206 (0.246) |
emerging_j
| −0.783 (0.146)*** | −0.635 (0.143)*** | ||||
Acquiring foreign VCs | ||||||
\(exp\;sec tor_{{max} (k)}^{t}\)
| −0.005 (0.001)*** | −0.007 (0.001)*** | −0.001 (0.002) | |||
\(exp\,country_{{max} (k)}^{t}\)
| 0.028 (0.003)*** | 0.034 (0.004)*** | −0.007 (0.012) | |||
\(exp\,targ et_{{max} (k)}^{t}\)
| 0.525 (0.059)*** | 0.542 (0.065)*** | 0.451 (0.151)* | |||
Year dummies | Yes | Yes | Yes | Yes | Yes | Yes |
N
| 7251 | 7251 | 6056 | 6056 | 1195 | 1195 |
Mc Faddens Pseudo ~ R
2
| 0.103 | 0.127 | 0.040 | 0.071 | 0.113 | 0.119 |
log pseudolikelihood | −4375.305 | −4257.428 | −3704.637 | −3582.7357 | −618.504 | −614.6 |