Industrial policy, structural transformation and economic growth: evidence from China

Frontiers of Business Research in China

Table 11 Results after controlling unobservable effects, and IV estimation

Independent variable	Dependent variable: Y
	Control unobservable effects				IV estimation
	(1)	(2)	(3)	(4)	2SLS
IP	0.0370^*	0.0430^**	0.0401^*	0.0401^*	0.0634^***
IP	(0.0193)	(0.0203)	(0.0210)	(0.0210)	(0.0153)
Control variables	Yes	Yes	Yes	Yes	Yes
Time trend	Yes	Yes	No	Yes	No
Year_FE	Yes	Yes	Yes	Yes	Yes
City_FE	Yes	Yes	Yes	Yes	Yes
Region_FE	No	No	Yes	Yes	No
Region × Year_FE	No	No	Yes	Yes	No
Time trend × Province	No	Yes	No	No	No
Time trend × Region	No	No	No	Yes	No

Notes. (1) * means P < 10%, * * means P < 5%, * * * means P < 1%; (2) The estimated coefficients in parentheses are the robust standard errors clustering to the city level