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Table 3 Parameters controlling the probability of employment growth by type of firms

From: Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka

 

Type of firm

 

Employment in period t

EPZ

Non EPZ

Difference

Firm employment growth effects below the threshold

\( {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:{\mathrm{L}}_{\mathrm{it}-1}\le 13 \)

\( {\upbeta}_{{\mathrm{L}}^{-}}+{\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \)

\( {\upbeta}_{{\mathrm{L}}^{-}} \)

\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \)

Lit = 14

βEPZ

reference

βEPZ

Difference

\( {\upbeta}_{{\mathrm{L}}^{-}}+{\upgamma}_{{\mathrm{L}}^{-}} \)

\( {\upbeta}_{{\mathrm{L}}^{-}} \)

\( {\upgamma}_{{\mathrm{L}}^{-}} \)

Firm employment growth effects above the threshold

\( {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=1:\ {\mathrm{L}}_{\mathrm{it}}\ge 15 \)

\( {\upbeta}_{{\mathrm{L}}^{+}}+{\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}} \)

\( {\upbeta}_{{\mathrm{L}}^{+}} \)

\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}} \)

Lit = 14

βEPZ

reference

βEPZ

Difference

\( {\upbeta}_{{\mathrm{L}}^{+}}+{\upgamma}_{L^{+}} \)

\( {\upbeta}_{{\mathrm{L}}^{+}} \)

\( {\upgamma}_{{\mathrm{L}}^{+}} \)

  1. EPZ: Export Promotion Zone.