We first estimate models (1) and (2) for local procurement share and then decompose the share of
local procurement into that from other Japanese-owned firms and from other firms in Thailand.
Finally, we also examine the impact of flooding on imports from various countries or regions. The basic
statistics are provided in Table 1.
We estimate the equation using four different specifications: with only the year dummy as in column
(I); with both year and industry dummy as in column (II); as a fractional logit model as in column
(III); and with year and affiliate dummy, namely, a two-way component fixed effect model (FE) as in
column (IV). Except for (IV), we also include Age as an independent variable. A fractional logit estimation
technique (Frac), proposed by Papke and Wooldridge (1996), ensures that the predicted values of
the dependent variable are in the unit interval, i.e., [0, 1].8 The results are the same except for the coefficients
on employment and age.