Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

Raj, Rajesh SN; Sen, Kunal

doi:10.1186/s40175-016-0056-8

IZA Journal of Labor & Development

Table 1 Summary statistics—firm attributes, 2000–2001 to 2010–2011

From: Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

Variables	Number	Mean	SD	Min	Max
Dependent variable^a
ENTYP	294,736	1.180350	0.473707	1	3
Finance^b
CAPSHOR	294,736	0.324626	0.468236	0	1
Firm capabilities^c
LINKAGE	294,736	0.276420	0.447228	0	1
ASSISTANCE	294,736	0.004402	0.066202	0	1
ACMAINT	294,736	0.038159	0.191581	0	1
REGIS	294,736	0.110029	0.312927	0	1
Locational variables^d
LOCATION	294,736	0.329175	0.469914	0	1
URBAN	294,736	0.313830	0.366611	0	1
TRANSPORT	294,736	0.820579	0.383705	0	1
DISTANCE	294,736	254.7668	179.2991	0	1010
Infrastructure and human capital variables^e
ELEC	294,736	0.180913	0.384946	0	1
SHSCSTPOP	294,736	0.241005	0.115686	0.026295	0.942542
PRIMEDU	294,736	0.298052	0.063819	0.14919	1
MIDGRADEDU	294,736	0.243946	0.094608	0.068002	0.964556
ROADVILLG	281,606	0.663063	0.239142	0.129032	1
Other control variables^f
STATUS	294,736	0.211609	0.408450	0	1

We applied frequency weights provided by the NSSO to compute descriptive statistics. Source: our calculations, from NSSO unit-level data for 2000–2001, 2005–2006 and 2010–2011 and the 2001 Census of India
^aThe dependent variable ENTYP is an ordered categorical variable taking values 1 to 3 (1 = PHE, 2 = MHE and 3 = NHE) denoting the type of the firm
^bFinance variable: CAPSHOR takes the value 1 if the firm faces a constraint and 0 if it does not
^cVariables representing firm capabilities: LINKAGE is coded as 1 if the firms work for a contractor and 0 if they do not; ASSISTANCE takes the value 1 if the firms received any assistance from the training and towards marketing and 0 if they state that they did not receive any such assistance; ACMAINT assumes the value 1 if the firms maintain a regular account and 0 if not; and REGIS takes the value 1 if they have registered under any act and 0 if they did not
^dLocational variables: LOCATION takes the value 1 if the firms are located in urban areas and 0 if they are located in rural areas; URBAN is a district-level measure representing the level of urbanisation in the district as measured by the share of urban population in total population; TRANSPORT takes the value 1 if a national highway or a broad-gauge line passes through the district and 0 if neither of them passes through the district; and DISTANCE signifies the remoteness of the district as captured by the distance of the district from the state capital
^eHuman capital variables: ELEC takes the value 1 if it has access to electricity and 0 if it lacks access to it; SHSCSTPOP represents the proportion of SC/ST population in total population; PRIMEDU captures the proportion of individuals who are educated at the primary level or below; MIDGRADEDU stands for the proportion of individuals educated at the secondary level and above; and ROADVILLG represents the share of villages with paved approach road in total villages
^fOther control variables: STATUS takes the value 1 if the firm has been expanding and 0 if the firm has been stagnant or contracting

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