From: Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka
Reduced form parameters: EPZ i = 1 | T = 14 a from Table 4 | Placebo 1: T = 20 a Sample excludes L it < 15 | Placebo 2: T = 30 a Sample excludes L it < 15 |
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\( {\mathrm{L}}_{\mathrm{it}}\le\ \mathrm{T}-1,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}}+{\upbeta}_{\mathrm{E}\mathrm{PZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \) | 0.09** (0.02) | 0.23*** (0.05) | 0.25*** (0.03) |
Lit = T : βEPZ | 0.12* (0.08) | 0.31*** (0.10) | 0.36*** (0.10) |
\( {\mathrm{L}}_{\mathrm{it}}\ge\ \mathrm{T}+1,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{+}}=1:\ {\upbeta}_{{\mathrm{L}}^{+}}+{\upbeta}_{\mathrm{E}\mathrm{PZ}}+{\upgamma}_{{\mathrm{L}}^{+}} \) | 0.19** (0.02) | 0.20*** (0.01) | 0.22*** (0.01) |
Reduced form parameters: EPZ i = 0 | |||
\( {\mathrm{L}}_{\mathrm{it}}\le\ \mathrm{T}-1,\ {\mathrm{E}}_{\mathrm{it}}^{{\mathrm{L}}^{-}}=1:\ {\upbeta}_{{\mathrm{L}}^{-}} \) | -0.17** (0.02) | 0.01 (0.01) | 0.04*** (0.01) |
Lit = T: reference | − | − | − |
\( {\mathrm{L}}_{\mathrm{it}}\ge\ T+1,\ {\mathrm{E}}_{\mathrm{it}}^{L^{+}}=0:\ {\upbeta}_{{\mathrm{L}}^{+}} \) | 0.048** (0.01) | 0.049*** (0.01) | 0.08*** (0.01) |
Structural estimates | |||
Hypothesis: Relative to nonEPZ firms of like size and vintage b | |||
βEPZ > 0: EPZ firms grow faster at the threshold | 0.123** (224) | 0.31** (5.7) | 0.36** (18) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{-}} \) >0: EPZ firms grow faster below the threshold | 0.255** (161) | 0.219** (21.63) | 0.21** (49.4) |
\( {\upbeta}_{\mathrm{EPZ}}+{\upgamma}_{{\mathrm{L}}^{+}}>0 \): EPZ firms grow faster above the threshold | 0.142** (2952) | 0.15** (131) | 0.14** (101) |
Hypothesis: Relative to same sector firms below the threshold b | |||
\( {\upbeta}_{{\mathrm{L}}^{+}}-{\upbeta}_{{\mathrm{L}}^{-}}>0 \): nonEPZ firms grow faster above the threshold | 0.214** (21) | 0.048** (22.6) | 0.04 ** (17.65) |
\( \left({\upbeta}_{{\mathrm{L}}^{+}}+{\upgamma}_{{\mathrm{L}}^{+}}\right)-\left({\upbeta}_{{\mathrm{L}}^{-}}+{\upgamma}_{{\mathrm{L}}^{-}}\right)>0 \): EPZ firms grow faster above the threshold | 0.101** (42) | -0.03 (42) | -0.03 (0.60) |
Hypothesis: Relative to EPZ firms at the threshold b | |||
\( {\upgamma}_{{\mathrm{L}}^{-}}=0 \) : EPZ firms grow at a different rate below the threshold | 0.133* (3.5) | −0.08 (3.5) | −0.15 (0.14) |
\( {\upgamma}_{{\mathrm{L}}^{+}}=0 \) : EPZ firms grow at a different rate above the threshold | 0.020 (0.01) | −0.15 (0.01) | −0.22 (0.43) |