Incentive measure and firm outcomes
| Firm outcomes | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Output value per worker | Value added per worker | Gross profit per worker | |||||||
| Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | |
| Independent variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
| Incentive measure | 0.055 (0.037) | 0.019 (0.031) | 0.044 (0.035) | 0.082 (0.055) | 0.034 (0.047) | 0.061 (0.041) | 0.058 (0.079) | 0.024 (0.064) | 0.050 (0.062) |
| Firm size | −0.367*** (0.037) | −0.369*** (0.029) | −0.376*** (0.031) | −0.280*** (0.026) | −0.271*** (0.020) | −0.274*** (0.021) | −0.471*** (0.035) | −0.478*** (0.028) | −0.482*** (0.030) |
| Household enterprise | −0.081 (0.230) | −0.088 (0.229) | −0.067 (0.230) | −0.245* (0.124) | −0.228* (0.121) | −0.241* (0.122) | −0.137 (0.132) | −0.153 (0.137) | −0.197 (0.152) |
| Private/sole proprietorship | 0.101 (0.207) | 0.098 (0.206) | 0.111 (0.203) | −0.018 (0.115) | −0.001 (0.115) | −0.001 (0.113) | 0.054 (0.147) | 0.044 (0.144) | 0.048 (0.152) |
| Limited liability company | 0.147 (0.196) | 0.170 (0.193) | 0.186 (0.187) | −0.053 (0.108) | −0.028 (0.107) | −0.027 (0.098) | −0.004 (0.120) | 0.020 (0.111) | 0.003 (0.099) |
| Joint stock company | 0.116 (0.238) | 0.127 (0.234) | 0.167 (0.218) | −0.033 (0.141) | −0.023 (0.146) | −0.009 (0.150) | −0.186 (0.216) | −0.174 (0.221) | −0.167 (0.218) |
| Informal | −0.034 (0.032) | −0.034 (0.038) | −0.050 (0.048) | −0.004 (0.035) | 0.003 (0.034) | −0.008 (0.030) | −0.003 (0.031) | −0.006 (0.036) | −0.020 (0.032) |
| Export | 0.437*** (0.102) | 0.439*** (0.109) | 0.479*** (0.122) | 0.338* (0.164) | 0.328* (0.166) | 0.356* (0.178) | 0.411*** (0.117) | 0.418*** (0.121) | 0.449*** (0.115) |
| Inspection | 0.093** (0.032) | 0.143** (0.058) | 0.084* (0.039) | 0.037 (0.022) | 0.133*** (0.034) | 0.105*** (0.029) | 0.138*** (0.041) | 0.177*** (0.047) | 0.136*** (0.037) |
| PCI | 0.027*** (0.007) | 0.020* (0.010) | 0.037*** (0.001) | 0.038*** (0.006) | 0.026*** (0.006) | 0.042*** (0.002) | 0.041*** (0.011) | 0.035*** (0.010) | 0.051*** (0.002) |
| Constant | 4.121*** (0.465) | 4.487*** (0.611) | 3.515*** (0.179) | 2.344*** (0.319) | 2.999*** (0.324) | 2.274*** (0.121) | 1.932*** (0.580) | 2.228*** (0.529) | 1.668*** (0.135) |
| R2 | 0.098 | 0.110 | 0.132 | 0.126 | 0.142 | 0.160 | 0.124 | 0.135 | 0.159 |
| Observations | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 |
| Province fixed effects | No | No | Yes | No | No | Yes | No | No | Yes |
| Year fixed effects | No | Yes | Yes | No | Yes | Yes | No | Yes | Yes |
| Province by year fixed effects | No | No | Yes | No | No | Yes | No | No | Yes |
| Firm outcomes | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Output value per worker | Value added per worker | Gross profit per worker | |||||||
| Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | |
| Independent variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
| Incentive measure | 0.055 (0.037) | 0.019 (0.031) | 0.044 (0.035) | 0.082 (0.055) | 0.034 (0.047) | 0.061 (0.041) | 0.058 (0.079) | 0.024 (0.064) | 0.050 (0.062) |
| Firm size | −0.367*** (0.037) | −0.369*** (0.029) | −0.376*** (0.031) | −0.280*** (0.026) | −0.271*** (0.020) | −0.274*** (0.021) | −0.471*** (0.035) | −0.478*** (0.028) | −0.482*** (0.030) |
| Household enterprise | −0.081 (0.230) | −0.088 (0.229) | −0.067 (0.230) | −0.245* (0.124) | −0.228* (0.121) | −0.241* (0.122) | −0.137 (0.132) | −0.153 (0.137) | −0.197 (0.152) |
| Private/sole proprietorship | 0.101 (0.207) | 0.098 (0.206) | 0.111 (0.203) | −0.018 (0.115) | −0.001 (0.115) | −0.001 (0.113) | 0.054 (0.147) | 0.044 (0.144) | 0.048 (0.152) |
| Limited liability company | 0.147 (0.196) | 0.170 (0.193) | 0.186 (0.187) | −0.053 (0.108) | −0.028 (0.107) | −0.027 (0.098) | −0.004 (0.120) | 0.020 (0.111) | 0.003 (0.099) |
| Joint stock company | 0.116 (0.238) | 0.127 (0.234) | 0.167 (0.218) | −0.033 (0.141) | −0.023 (0.146) | −0.009 (0.150) | −0.186 (0.216) | −0.174 (0.221) | −0.167 (0.218) |
| Informal | −0.034 (0.032) | −0.034 (0.038) | −0.050 (0.048) | −0.004 (0.035) | 0.003 (0.034) | −0.008 (0.030) | −0.003 (0.031) | −0.006 (0.036) | −0.020 (0.032) |
| Export | 0.437*** (0.102) | 0.439*** (0.109) | 0.479*** (0.122) | 0.338* (0.164) | 0.328* (0.166) | 0.356* (0.178) | 0.411*** (0.117) | 0.418*** (0.121) | 0.449*** (0.115) |
| Inspection | 0.093** (0.032) | 0.143** (0.058) | 0.084* (0.039) | 0.037 (0.022) | 0.133*** (0.034) | 0.105*** (0.029) | 0.138*** (0.041) | 0.177*** (0.047) | 0.136*** (0.037) |
| PCI | 0.027*** (0.007) | 0.020* (0.010) | 0.037*** (0.001) | 0.038*** (0.006) | 0.026*** (0.006) | 0.042*** (0.002) | 0.041*** (0.011) | 0.035*** (0.010) | 0.051*** (0.002) |
| Constant | 4.121*** (0.465) | 4.487*** (0.611) | 3.515*** (0.179) | 2.344*** (0.319) | 2.999*** (0.324) | 2.274*** (0.121) | 1.932*** (0.580) | 2.228*** (0.529) | 1.668*** (0.135) |
| 0.098 | 0.110 | 0.132 | 0.126 | 0.142 | 0.160 | 0.124 | 0.135 | 0.159 | |
| Observations | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 | 4,803 |
| Province fixed effects | No | No | Yes | No | No | Yes | No | No | Yes |
| Year fixed effects | No | Yes | Yes | No | Yes | Yes | No | Yes | Yes |
| Province by year fixed effects | No | No | Yes | No | No | Yes | No | No | Yes |
Notes: Robust standard errors clustered on the provincial level are in parentheses. Partnership/collective/cooperative is omitted among firm’s ownership structure dummies. *,**,***Significant at 10, 5 and 1 percent levels, respectively
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