Individual obstacles in BIC pooling firms in 7 countries
| Panel A: OLS | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP | Panel B: IV | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP |
|---|---|---|---|---|---|---|---|
| Business climate- access to finance and credit | −0.1484** (0.0624) | −0.1011*** (0.0264) | −0.0244* (0.0138) | Business climate- access to finance | −0.1822** (0.0841) | −0.3282* (0.1739) | −0.1382* (0.0734) |
| No. observations | 7,952 | 7,761 | 7,252 | No. observations | 7,894 | 7,555 | 7,084 |
| R-square | 0.3292 | 0.2683 | 0.0435 | Centered R-Square | 0.1843 | 0.0830 | 0.0227 |
| Weak identification test | 13.142 [0.000] | 10.800 [0.000] | 12.164 [0.000] | ||||
| Hansen J statistic | 12.443 [0.6131] | 23.490 [0.2012] | 20.022 [0.3192] | ||||
| Business climate- access to land | −0.0717*** (0.0244) | −0.0386 (0.0311) | −0.0169 (0.0155) | Business climate- access to land | −0.1007** (0.0316) | −0.1323 (0.3582) | −0.0578 (0.0831) |
| No. observations | 7,864 | 7,743 | 7,226 | No. observations | 7,720 | 7,533 | 7,031 |
| R-square | 0.3309 | 0.2680 | 0.0381 | Centered R-Square | 0.1800 | 0.0892 | 0.0264 |
| Weak identification test | 15.88 [0.000] | 6.525 [0.0042] | 8.965 [0.000] | ||||
| Hansen J statistic | 17.580 [0.2490] | 24.417 [0.1807] | 25.053 [0.1688] | ||||
| Business climate- business licensing and permits | −0.1059** (0.0227) | −0.1132** (0.0265) | −0.0581 (0.0452) | Business climate- business licensing and permits | −0.1416* (0.0774) | −0.1858*** (0.0288) | −0.1293 (0.1084) |
| No. observations | 7,924 | 7,816 | 7,488 | No. observations | 7,771 | 7,601 | 7,223 |
| R-square | 0.3241 | 0.2563 | 0.0426 | Centered R-Square | 0.1821 | 0.0537 | 0.0192 |
| Weak identification test | 10.425 [0.000] | 9.881 [0.000] | 9.234 [0.000] | ||||
| Hansen J statistic | 12.578 [0.6033] | 18.583 [0.3908] | 18.120 [0.4169] | ||||
| Business climate- corruption | −0.2082** (0.0213) | −0.2040** (0.0242) | −0.0235** (0.0121) | Business climate- corruption | −0.5254*** (0.1459) | 0.5678*** (0.1736) | −0.1168* (0.0643) |
| No. observations | 7,982 | 7,849 | 7,521 | No. observations | 7,793 | 7,637 | 7,259 |
| R-square | 0.5119 | 0.2647 | 0.0427 | Centered R-Square | 0.1623 | 0.1059 | 0.0328 |
| Weak identification test | 17.092 [0.000] | 11.934 [0.000] | 18.767 [0.000] | ||||
| Hansen J statistic | 19.411 [0.2479] | 22.953 [0.2149] | 19.086 [0.2642] | ||||
| Business climate- electricity | −0.1595*** (0.0220) | −0.0797*** (0.0260) | −0.0115 (0.0136) | Business climate- electricity | −0.1871** (0.0882) | −0.2196** (0.0959) | −0.1101*** (0.0183) |
| No. observations | 7,991 | 7,822 | 7,539 | No. observations | 7,787 | 7,615 | 7,264 |
| R-square | 0.3297 | 0.2618 | 0.0412 | Centered R-Square | 0.1792 | 0.0695 | 0.0345 |
| Weak identification test | 16.268 [0.000] | 16.602 [0.000] | 15.705 [0.000] | ||||
| Hansen J statistic | 24.738 [0.1845] | 24.887 [0.1718] | 21.135 [0.2733] |
| Panel A: OLS | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP | Panel B: IV | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP |
|---|---|---|---|---|---|---|---|
| Business climate- access to finance and credit | −0.1484** (0.0624) | −0.1011*** (0.0264) | −0.0244* (0.0138) | Business climate- access to finance | −0.1822** (0.0841) | −0.3282* (0.1739) | −0.1382* (0.0734) |
| No. observations | 7,952 | 7,761 | 7,252 | No. observations | 7,894 | 7,555 | 7,084 |
| R-square | 0.3292 | 0.2683 | 0.0435 | Centered R-Square | 0.1843 | 0.0830 | 0.0227 |
| Weak identification test | 13.142 [0.000] | 10.800 [0.000] | 12.164 [0.000] | ||||
| Hansen J statistic | 12.443 [0.6131] | 23.490 [0.2012] | 20.022 [0.3192] | ||||
| Business climate- access to land | −0.0717*** (0.0244) | −0.0386 (0.0311) | −0.0169 (0.0155) | Business climate- access to land | −0.1007** (0.0316) | −0.1323 (0.3582) | −0.0578 (0.0831) |
| No. observations | 7,864 | 7,743 | 7,226 | No. observations | 7,720 | 7,533 | 7,031 |
| R-square | 0.3309 | 0.2680 | 0.0381 | Centered R-Square | 0.1800 | 0.0892 | 0.0264 |
| Weak identification test | 15.88 [0.000] | 6.525 [0.0042] | 8.965 [0.000] | ||||
| Hansen J statistic | 17.580 [0.2490] | 24.417 [0.1807] | 25.053 [0.1688] | ||||
| Business climate- business licensing and permits | −0.1059** (0.0227) | −0.1132** (0.0265) | −0.0581 (0.0452) | Business climate- business licensing and permits | −0.1416* (0.0774) | −0.1858*** (0.0288) | −0.1293 (0.1084) |
| No. observations | 7,924 | 7,816 | 7,488 | No. observations | 7,771 | 7,601 | 7,223 |
| R-square | 0.3241 | 0.2563 | 0.0426 | Centered R-Square | 0.1821 | 0.0537 | 0.0192 |
| Weak identification test | 10.425 [0.000] | 9.881 [0.000] | 9.234 [0.000] | ||||
| Hansen J statistic | 12.578 [0.6033] | 18.583 [0.3908] | 18.120 [0.4169] | ||||
| Business climate- corruption | −0.2082** (0.0213) | −0.2040** (0.0242) | −0.0235** (0.0121) | Business climate- corruption | −0.5254*** (0.1459) | 0.5678*** (0.1736) | −0.1168* (0.0643) |
| No. observations | 7,982 | 7,849 | 7,521 | No. observations | 7,793 | 7,637 | 7,259 |
| 0.5119 | 0.2647 | 0.0427 | Centered | 0.1623 | 0.1059 | 0.0328 | |
| Weak identification test | 17.092 [0.000] | 11.934 [0.000] | 18.767 [0.000] | ||||
| Hansen J statistic | 19.411 [0.2479] | 22.953 [0.2149] | 19.086 [0.2642] | ||||
| Business climate- electricity | −0.1595*** (0.0220) | −0.0797*** (0.0260) | −0.0115 (0.0136) | Business climate- electricity | −0.1871** (0.0882) | −0.2196** (0.0959) | −0.1101*** (0.0183) |
| No. observations | 7,991 | 7,822 | 7,539 | No. observations | 7,787 | 7,615 | 7,264 |
| 0.3297 | 0.2618 | 0.0412 | Centered | 0.1792 | 0.0695 | 0.0345 | |
| Weak identification test | 16.268 [0.000] | 16.602 [0.000] | 15.705 [0.000] | ||||
| Hansen J statistic | 24.738 [0.1845] | 24.887 [0.1718] | 21.135 [0.2733] |
| Panel A: OLS | DV: Logarithm of value added | DV Labour productivity | DV: Logarithm of TFP | Panel B: IV | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP |
|---|---|---|---|---|---|---|---|
| Business climate- inadequate education | −0.1343** (0.0217) | −0.0716*** (0.0259) | −0.0286** (0.0137) | Business climate- inadequate education | −0.1938* (0.1104) | −0.1786** (0.0862) | −0.0962* (0.0495) |
| No. observations | 7,984 | 7,802 | 7,584 | No. observations | 7,751 | 7,594 | 7,292 |
| R-square | 0.3229 | 0.2554 | 0.0427 | Centered R-Square | 0.1620 | 0.0113 | 0.0111 |
| Weak identification test | 7.444 [0.0025] | 7.726 [0.0022] | 6.835 [0.0035] | ||||
| Hansen J statistic | 19.221 [0.3573] | 17.264 [0.4687] | 16.620 [0.5105] | ||||
| Business climate- labour regulations | −0.1184*** (0.0222) | −0.0530** (0.0258) | −0.0205 (0.0139) | Business climate- labour regulations | −0.1660* (0.0903) | −0.2142*** (0.0269) | −0.1497 (0.1194) |
| No. observations | 7,957 | 7,807 | 7,532 | No. observations | 7,729 | 7,598 | 7,275 |
| R-square | 0.3214 | 0.2545 | 0.0426 | Centered R-Square | 0.1877 | 0.0344 | 0.0211 |
| Weak identification test | 11.430 [0.000] | 10.759 [0.000] | 10.505 [0.000] | ||||
| Hansen J statistic | 28.207 [0.1298] | 24.354 [0.1821] | 23.251 [0.2071] | ||||
| Business climate- political instability | −0.3152*** (0.0284) | −0.2835*** (0.0336) | −0.0416** (0.0181) | Business climate- political instability | −0.6485*** (0.1372) | −0.7732*** (0.1606) | −0.3450* (0.1859) |
| No. observations | 7,979 | 7,722 | 7,236 | No. observations | 7,736 | 7,492 | 7,024 |
| R-square | 0.3372 | 0.2712 | 0.0423 | Centered R-Square | 0.1881 | 0.0601 | 0.0331 |
| Weak identification test | 23.164 [0.000] | 23.125 [0.000] | 18.794 [0.000] | ||||
| Hansen J statistic | 14.001 [0.5986] | 20.224 [0.3104] | 17.355 [0.4629] | ||||
| Business climate- competition from the informal sector | −0.0444** (0.0221) | −0.0484* (0.0256) | −0.0289 (0.0240) | Business climate- competition from the informal sector | −0.0502* (0.0272) | −0.1463 (0.1183) | −0.1019 (0.0840) |
| No. observations | 7,986 | 7,726 | 7,434 | No. observations | 7,782 | 7,503 | 7,182 |
| R-square | 0.3327 | 0.2755 | 0.0428 | Centered R-Square | 0.1917 | 0.0940 | 0.0232 |
| Weak identification test | 18.728 [0.000] | 17.391 [0.000] | 16.370 [0.000] | ||||
| Hansen J statistic | 22.499 [0.2277] | 18.360 [0.4032] | 20.717 [0.2896] | ||||
| Business climate- tax rates | −0.0418* (0.0230) | −0.0294 (0.0261) | −0.0480*** (0.0131) | Business climate- tax rates | −0.1344 (0.0847) | −0.5091** (0.2540) | −0.0576** (0.0271) |
| No. observations | 7,960 | 7,835 | 7,571 | No. observations | 7,755 | 7,575 | 7,290 |
| R-square | 0.3223 | 0.2571 | 0.0433 | Centered R-Square | 0.1842 | 0.0602 | 0.0294 |
| Weak identification test | 12.464 [0.000] | 11.749 [0.000] | 12.746 [0.000] | ||||
| Hansen J statistic | 17.346 [0.4635] | 22.180 [0.2374] | 19.778 [0.3303] |
| Panel A: OLS | DV: Logarithm of value added | DV Labour productivity | DV: Logarithm of TFP | Panel B: IV | DV: Logarithm of value added | DV: Labour productivity | DV: Logarithm of TFP |
|---|---|---|---|---|---|---|---|
| Business climate- inadequate education | −0.1343** (0.0217) | −0.0716*** (0.0259) | −0.0286** (0.0137) | Business climate- inadequate education | −0.1938* (0.1104) | −0.1786** (0.0862) | −0.0962* (0.0495) |
| No. observations | 7,984 | 7,802 | 7,584 | No. observations | 7,751 | 7,594 | 7,292 |
| 0.3229 | 0.2554 | 0.0427 | Centered | 0.1620 | 0.0113 | 0.0111 | |
| Weak identification test | 7.444 [0.0025] | 7.726 [0.0022] | 6.835 [0.0035] | ||||
| Hansen J statistic | 19.221 [0.3573] | 17.264 [0.4687] | 16.620 [0.5105] | ||||
| Business climate- labour regulations | −0.1184*** (0.0222) | −0.0530** (0.0258) | −0.0205 (0.0139) | Business climate- labour regulations | −0.1660* (0.0903) | −0.2142*** (0.0269) | −0.1497 (0.1194) |
| No. observations | 7,957 | 7,807 | 7,532 | No. observations | 7,729 | 7,598 | 7,275 |
| 0.3214 | 0.2545 | 0.0426 | Centered | 0.1877 | 0.0344 | 0.0211 | |
| Weak identification test | 11.430 [0.000] | 10.759 [0.000] | 10.505 [0.000] | ||||
| Hansen J statistic | 28.207 [0.1298] | 24.354 [0.1821] | 23.251 [0.2071] | ||||
| Business climate- political instability | −0.3152*** (0.0284) | −0.2835*** (0.0336) | −0.0416** (0.0181) | Business climate- political instability | −0.6485*** (0.1372) | −0.7732*** (0.1606) | −0.3450* (0.1859) |
| No. observations | 7,979 | 7,722 | 7,236 | No. observations | 7,736 | 7,492 | 7,024 |
| 0.3372 | 0.2712 | 0.0423 | Centered | 0.1881 | 0.0601 | 0.0331 | |
| Weak identification test | 23.164 [0.000] | 23.125 [0.000] | 18.794 [0.000] | ||||
| Hansen J statistic | 14.001 [0.5986] | 20.224 [0.3104] | 17.355 [0.4629] | ||||
| Business climate- competition from the informal sector | −0.0444** (0.0221) | −0.0484* (0.0256) | −0.0289 (0.0240) | Business climate- competition from the informal sector | −0.0502* (0.0272) | −0.1463 (0.1183) | −0.1019 (0.0840) |
| No. observations | 7,986 | 7,726 | 7,434 | No. observations | 7,782 | 7,503 | 7,182 |
| 0.3327 | 0.2755 | 0.0428 | Centered | 0.1917 | 0.0940 | 0.0232 | |
| Weak identification test | 18.728 [0.000] | 17.391 [0.000] | 16.370 [0.000] | ||||
| Hansen J statistic | 22.499 [0.2277] | 18.360 [0.4032] | 20.717 [0.2896] | ||||
| Business climate- tax rates | −0.0418* (0.0230) | −0.0294 (0.0261) | −0.0480*** (0.0131) | Business climate- tax rates | −0.1344 (0.0847) | −0.5091** (0.2540) | −0.0576** (0.0271) |
| No. observations | 7,960 | 7,835 | 7,571 | No. observations | 7,755 | 7,575 | 7,290 |
| 0.3223 | 0.2571 | 0.0433 | Centered | 0.1842 | 0.0602 | 0.0294 | |
| Weak identification test | 12.464 [0.000] | 11.749 [0.000] | 12.746 [0.000] | ||||
| Hansen J statistic | 17.346 [0.4635] | 22.180 [0.2374] | 19.778 [0.3303] |
Note(s): Standard errors within brackets, p-values within the square brackets, ***, ** and * indicate significance respectively at the 1, 5 and 10% level
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