From: Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka
Reduced form parameters: EPZ i = 1 | Marginal effect a |
---|---|
\( {\mathrm{L}}_{\mathrm{it}}\le 13,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}}+{\upbeta}_{\mathrm{E}\mathrm{PZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \) | −0.073** (0.011) |
Lit = 14 : βEPZ | −0.032 (0.062) |
\( {\mathrm{L}}_{\mathrm{it}}\ge 15,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=1:\ {\upbeta}_{{\mathrm{L}}^{+}}+{\upbeta}_{\mathrm{E}\mathrm{PZ}}+{\upgamma}_{{\mathrm{L}}^{+}} \) | −0.093** (0.009) |
Reduced form parameters: EPZi = 0 | |
\( {\mathrm{L}}_{\mathrm{it}}\le 13,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}} \) | 0.023** (0.011) |
Lit = 14: reference | − |
\( {\mathrm{L}}_{\mathrm{it}}\ge 15,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=0:\ {\upbeta}_{{\mathrm{L}}^{+}} \) | 0.004 (0.012) |
Structural estimates | |
Hypothesis: Relative to nonEPZ firms of like size and vintage… | Marginal effect b |
βEPZ < 0: EPZ firms survive more readily at the threshold | −0.032** (66.4) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{-}}<0 \): EPZ firms survive more readily below the threshold | −0.096** (72.6) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}}<0 \): EPZ firms survive more readily above the threshold | −0.096** (30.1) |
Hypothesis: Relative to firms in the same sector below the threshold… | |
\( {\upbeta}_{{\mathrm{L}}^{+}}-{\upbeta}_{{\mathrm{L}}^{-}}<0 \): nonEPZ firms survive more readily above the threshold | −0.022 (1.22) |
\( \left({\upbeta}_{{\mathrm{L}}^{+}}+{\upgamma}_{{\mathrm{L}}^{+}}\right)-\left({\upbeta}_{{\mathrm{L}}^{-}}+{\upgamma}_{{\mathrm{L}}^{-}}\right)<0 \): EPZ firms survive more readily above the threshold | −0.020 (0.266) |
Hypothesis: Relative to EPZ firms at the threshold…. | |
\( {\upgamma}_{{\mathrm{L}}^{-}}=0 \): EPZ firms below the threshold have a different survival rate | −0.064 (1.22) |
\( {\upgamma}_{{\mathrm{L}}^{+}}=0 \) : EPZ firms above the threshold have a different survival rate | −0.065 (1.66) |