November 1998                                          SCSB# 390

TRADE, POLICY, AND COMPETITION:
FORCES SHAPING AMERICAN AGRICULTURE PROCEEDINGS

TABLE 8.5. REGRESSION RESULTS TO EXPLAIN U.S. DIRECT FOREIGN INVESTMENT BEHAVIOR
Variables Estimate S.E. t-ratio prob>|t|
Intercept 4066.69 1199.69 3.390 0.0040
INC 3.30 1.09 3.028 0.0085
DUMMY 1066.55 220.53 4.836 0.0002
EXCH -33.98 14.51 -2.341 0.0335
Adjusted R2 = 0.68
DW = 1.722
Degrees of Freedom = 14
DL = 0.708
DU = 1.422 @ 1% level

Where the variables are defined as:
INC = Income generated from U.S. operations in Canada
DUMMY = 0 before 1989, and 1 after 1989
EXCH = Effective exchange rate between the U.S. and Canada (Canadian $ / U.S. $)
 

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