Main varieble

Definition

log(incomeijdt)

I n c o m e G r o w t h i j d = ln ( i n c o m e i j d , T ) ln ( i n c o m e i j d , t )

ageijdt

2006 minus the firm’s start operation year

VDijdt

V e r t i c a l D i s i n t e g r a t i o n i j d t = p u r c h a s e d i n t e r m e d i a t e i n p u t i j d t g r o s s o u t p u t v a l u e i j d t

log(popdesct)

the 2006 population in city c per square-kilometer

RVdt

R V d t = j = 1 J P j d t × [ g j p g d t P j d t log 2 ( 1 p g d t / P j d t ) ]

UVdt

U V d t = j = 1 J P j d t log 2 ( 1 P j d t )