12 December 2019 3 5K Report

Hello,

I have a panel database for firms i (90 firms) across year t (from 2013 to 2019). Some firms witnessed a cross border investment in a year that is between 2013 and 2019. I created a dummy=1, when the firm has received the investment in the corresponding year.

I want to create three groups small (1), medium (2) and large (3) using the revenue generated by the company and then compute how likely one firm can go from group 1 to group 2 or 3, if received foreign investment.

I am not sure which statistical method I should use and how to arrange my data according to this method.

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