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IZA Journal of European Labor Studies

Table 1 Estimation results for annual average firm growth, 2002-2008

From: Institutional barriers and job creation in Central and Eastern Europe

Variables

No regulations

Overall inst.

Inst. regulation

Access to finance

Crime

Corruption

Tax

Labor regulation

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Firm characteristics

Initial size

−0.053***

−0.078***

−0.079***

−0.078***

−0.078***

−0.078***

−0.079***

−0.078***

(0.003)

(0.005)

(0.005)

(0.005)

(0.005)

(0.005)

(0.005)

(0.005)

Age

−0.046***

−0.076***

−0.077***

−0.076***

−0.076***

−0.076***

−0.077***

−0.076***

(0.002)

(0.006)

(0.005)

(0.006)

(0.006)

(0.006)

(0.006)

(0.006)

Initial size × age

0.005***

0.013***

0.013***

0.013***

0.013***

0.013***

0.013***

0.013***

(0.001)

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

TFP

-

0.015***

0.015***

0.015***

0.015***

0.015***

0.015***

0.015***

-

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

(0.002)

Foreign owner

-

0.035***

0.035***

0.034***

0.035***

0.035***

0.036***

0.035***

-

(0.008)

(0.008)

(0.008)

(0.008)

(0.008)

(0.008)

(0.008)

Industry characteristics

Agriculture

0.004

0.032***

0.012*

0.013*

0.033***

0.032***

0.026***

0.033***

(0.003)

(0.004)

(0.006)

(0.007)

(0.003)

(0.003)

(0.004)

(0.003)

Mining

0.043***

-

-

-

-

-

-

-

(0.009)

-

-

-

-

-

-

-

Construction

0.038***

0.061***

0.043***

0.049***

0.061***

0.061***

0.054***

0.061***

(0.006)

(0.009)

(0.010)

(0.009)

(0.009)

(0.009)

(0.010)

(0.009)

Manufacturing

0.032***

0.041***

0.022***

0.033***

0.042***

0.040***

0.032***

0.041***

(0.006)

(0.006)

(0.007)

(0.006)

(0.006)

(0.008)

(0.006)

(0.006)

Wholesale

0.006

0.015***

0.000

0.005

0.015***

0.014***

0.005

0.016***

(0.005)

(0.002)

(0.004)

(0.004)

(0.002)

(0.002)

(0.004)

(0.002)

Transport

0.017**

0.019**

0.004

0.014**

0.020**

0.018**

0.015***

0.020**

(0.007)

(0.008)

(0.005)

(0.005)

(0.008)

(0.009)

(0.005)

(0.009)

Overall inst.a)

-

−0.009

−0.031**

0.016

−0.013

0.004

0.005

−0.015

-

(0.010)

(0.011)

(0.010)

(0.015)

(0.015)

(0.010)

(0.013)

Inst. regulation

-

-

0.025***

-

-

-

-

-

-

-

(0.008)

-

-

-

-

-

Access to finance

-

-

-

−0.027***

-

-

-

-

-

-

-

(0.010)

-

-

-

-

Crime

-

-

-

-

0.004

-

-

-

-

-

-

-

(0.009)

-

-

-

Corruption

-

-

-

-

-

−0.005

-

-

-

-

-

-

-

(0.010)

-

-

Taxation

-

-

-

-

-

-

−0.020***

-

-

-

-

-

-

-

(0.007)

 

Labor regulation

-

-

-

-

-

-

-

0.007

-

-

-

-

-

-

-

(0.008)

Fixed effects

Country

198.83***

135.73***

122.51***

124.18***

86.91***

165.00***

139.77***

145.88***

R 2

0.097

0.139

0.141

0.140

0.139

0.139

0.140

Observations

180,932

34,086

34,086

34,086

34,086

34,086

34,086

34,086

  1. Notes: The dependent variable is the average annual employment growth rate for the period 2002–2008. Constant not reported. Clustered standard errors (at the 2-digit industry level) in parenthesis. *, ** and *** denote significance at 10 percent, 5 percent and 1 percent levels, respectively. a) In columns (3)–(8) the overall institutional barriers are calculated without including the questions on the respective specific institutional barrier investigated. The coefficient for the number of observed years is not reported.
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