Table 4

OLS and 2SLS regressions for business and investment climate in Jordan

Panel A: OLSDV: Logarithm of value addedDV: Labour productivityDV: Logarithm of TFPPanel B: IVDV: Logarithm of value addedDV: Labour productivityDV: Logarithm of TFP
Business climate−0.1644* (0.0930)−0.1015 (0.1327)−0.1428* (0.7331)Business climate−0.2111* (0.4211)−0.2610 (0.4848)−0.1902* (0.1081)
Logarithm of firm size0.9904*** (0.0829)−0.0221 (0.0979)0.0409 (0.1058)Logarithm of firm size0.9676*** (0.0950)−0.0339 (0.1178)0.0522 (0.0799)
Young firms0.1316 (0.2225)0.0567 (0.2960)0.1084 (0.0883)Young firms0.1203 (0.2282)0.0237 (0.2997)0.0985 (0.1055)
Is one of the owners female? (Yes)−0.7475*** (0.2613)−1.2679*** (0.2993)−1.3926*** (0.3285)Is one of the owners female? (Yes)−0.8461*** (0.2705)−1.4402*** (0.3060)−1.5531*** (0.3422)
Manager's years of experience0.0121 (0.0097)0.0056 (0.0102)0.0118 (0.0109)Manager's years of experience0.0095 (0.0091)0.0067 (0.0107)0.0129 (0.0113)
International quality assurance qualification (Yes)0.1885 (0.2508)0.2040 (0.2902)0.4190* (0.2274)International quality assurance qualification (Yes)0.1506 (0.2608)0.1855 (0.2894)0.4237* (0.2220)
Is the firm part of another establishment? (Yes)0.2616 (0.3141)0.1878 (0.3640)−0.3227 0.3832)Is the firm part of another establishment? (Yes)0.1710 (0.3472)0.3124 (0.4316)−0.3838 (0.4221)
Firm status (public owned)0.0042 (0.0159)−0.0028 (0.0187)−0.0169 (0.0140)Firm status (public owned)0.0053 (0.0160)−0.0022 (0.0182)−0.0188 (0.0144)
No. observations404401358No. observations386381343
R-square0.49040.11220.1518Centered R-Square0.48490.11570.1568
    Weak identification test15.219 [0.0006]13.957 [0.0012]16.119 0.0001]
    Hansen J statistic7.881 [0.4452]6.448 [0.5838]12.255 [0.1139]

Note(s): Standard errors within brackets, p-values within the square brackets, *** and * indicate significance respectively at the 1 and 10% level. The period of analysis is 2006–2013

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