From: Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka
Reduced form parameters: EPZ i = 1 | Marginal effect a |
---|---|
\( {\mathrm{L}}_{\mathrm{it}}\le 13,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}}+{\upbeta}_{\mathrm{E}\mathrm{PZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \) | 0.089** (0.023) |
Lit = 14 : βEPZ | 0.123 (0.079) |
\( {\mathrm{L}}_{\mathrm{it}}\ge 15,\ {E}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=1:\ {\upbeta}_{{\mathrm{L}}^{+}}+{\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}} \) | 0.190** (0.019) |
Reduced form parameters: EPZi = 0 | |
\( {\mathrm{L}}_{\mathrm{it}}\le 13,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}} \) | -0.166** (0.015) |
Lit = 14: reference | − |
\( {\mathrm{L}}_{\mathrm{it}}\ge 15,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=0:\ {\upbeta}_{{\mathrm{L}}^{+}} \) | 0.048** (0.013) |
Structural estimates | |
Hypothesis: Relative to nonEPZ firms of like size and vintage… | Marginal effect b |
βEPZ > 0: EPZ firms grow faster at the threshold | 0.123** (224.1) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{-}}>0 \): EPZ firms grow faster below the threshold | 0.255** (160.7) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}}>0 \): EPZ firms grow faster above the threshold | 0.142** (2952) |
Hypothesis: Relative to same sector firms below the threshold… | |
\( {\upbeta}_{{\mathrm{L}}^{+}}-{\upbeta}_{{\mathrm{L}}^{-}}>0 \): nonEPZ firms grow faster above the threshold | 0.214** (21.2) |
\( \left({\upbeta}_{{\mathrm{L}}^{+}}+{\upgamma}_{{\mathrm{L}}^{+}}\right)-\left({\upbeta}_{{\mathrm{L}}^{-}}+{\upgamma}_{{\mathrm{L}}^{-}}\right)>0 \): EPZ firms grow faster above the threshold | 0.101** (41.5) |
Hypothesis: Relative to EPZ firms at the threshold…. | |
\( {\upgamma}_{{\mathrm{L}}^{-}}=0 \) : EPZ firms grow at a different rate below the threshold | 0.133* (3.5) |
\( {\upgamma}_{{\mathrm{L}}^{+}}=0 \) : EPZ firms grow at a different rate above the threshold | 0.020 (0.01) |