The coefficients for the requirement proxies
TREQS and PREQS am both negative, but TREQS is
seldom significantly different from zero, and it is
therefore not shown in the table. This may suggest that
the requirements captured by TREQS may sometimes
include rules that force the affiliates to import technology
irrespective of the costs, or that TREQS has
little effect on the affiliates’ costs of importing technology,
as discussed earlier. Both ED2ND and
ED3RD have the expected positive coefficients, but
they are not highly significant.