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Table 3 Correlates of job growth among basic firm-level features and overall business climate traits including wages, infrastructure, regulation and finance, in East Asia Pacific over the last 3 years (model 1)

From: Creating and destroying jobs across East Asia Pacific: a country-level analysis on wages, exports, finance, regulation and infrastructure

Dependent variable:
Job growth rate, annual
China Fiji Indonesia Laos Micronesia Mongolia Philippines Samoa Timor-Leste Tonga Vanuatu Vietnam
Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat
Basic firm-level traits                         
Initial firm size, <=5 emp. (ref. 31+) 0.130*** 188.5 0.160*** 4.3 0.359*** 85.7 0.091*** 3.3 0.970*** 8.4 2.600*** 22.1 0.327*** 26.3 0.287*** 4.8 0.104 1.0 0.120*** 3.1 −0.142 −1.1 0.508*** 23.7
Initial firm size, 6–15 emp. 0.043*** 97.6 0.139*** 4.8 0.067*** 16.6 0.038 1.6 0.100 1.4 0.597*** 6.4 0.084*** 9.1 0.022 0.4 0.154 1.7 0.076* 2.0 0.029 0.3 0.523*** 31.7
Initial firm size, 16–30 emp. 0.007*** 14.1 0.040 1.4 −0.012** −2.3 −0.038 −1.2 0.174** 2.1 0.325*** 3.5 0.061*** 6.4 −0.176** −2.1 −0.023 −0.2 0.009 0.2 0.129 1.2 0.180*** 10.9
Firms <10 years old (ref. >=20) 0.035*** 53.3 0.023 0.7 0.016*** 6.4 0.051** 2.1 −0.031 −0.5 0.019 0.1 −0.067*** −7.4 −0.001 −0.0 −0.104 −0.4 0.026** 2.1 0.227*** 2.9 −0.049** −2.5
Firms 10–19 years old 0.010*** 16.4 −0.018 −0.9 0.069*** 28.7 0.021 1.0 0.087 1.5 0.416*** 3.2 −0.078*** −9.8 −0.141*** −3.3 0.060 0.2 0.029** 2.1 0.196** 2.6 0.025 1.3
City w/1 mil. or capital (ref. small city) 0.015*** 8.4 0.070*** 3.2 −0.046*** −24.0 -- -- -- -- 0.090 1.2 −0.016** −2.1 −0.094 −0.9 -- -- -- -- -- -- 0.108*** 7.3
Manufacturing (ref. other sectors) 0.042*** 40.5 0.098** 2.2 0.030*** 4.0 −0.141*** −3.7 −0.038 −0.3 −1.078*** −11.0 0.035 0.9 −0.104* −1.8 −0.200** −2.4 0.113*** 9.5 0.041 0.3 −0.154*** −7.7
Services −0.002** −2.4 0.188*** 5.5 0.005 0.6 −0.135*** −3.7 0.239** 2.2 −1.234*** −12.0 0.073* 1.9 0.031 0.5 −0.147* −1.8 -- -- 0.184** 2.1 −0.259*** −12.1
Formally registered when opened 0.005*** 6.8 0.020 0.5 −0.024*** −9.9 −0.016 −0.8 0.366** 2.4 0.250** 2.3 0.074*** 4.1 −0.071 −1.2 −0.115 −1.1 0.066*** 3.0 0.003 0.0 0.185*** 12.3
Sole proprietorship −0.013*** −38.1 −0.018 −1.0 −0.153*** −50.7 −0.016 −0.4 −0.189*** −3.1 −0.217 −0.9 −0.046*** −5.6 −0.052 −1.5 −0.209** −2.5 −0.006 −0.5 0.110* 1.7 −0.133*** −11.3
Firm is foreign owned, partly or fully 0.010*** 12.3 0.065*** 2.6 0.095*** 12.2 0.088** 2.5 0.008 0.1 −0.082 −0.8 0.042*** 4.1 0.010 0.2 −0.006 −0.1 −0.038*** −2.9 −0.019 −0.3 0.106*** 5.0
Share of female employees −0.052*** −63.3 −0.139*** −5.3 −0.066*** −24.9 −0.067** −2.4 −0.245* −2.0 −0.484*** −3.7 −0.077*** −5.9 0.200*** 3.0 −0.262* −1.8 −0.090*** −4.0 −0.150 −1.3 0.064*** 2.9
Wage and productivity traits                         
Wage per worker, tercile 2 (ref. ter. 1) 0.021*** 48.4 −0.144*** −5.8 −0.108*** −48.2 −0.036* −1.8 −0.242*** −3.2 −0.216*** −2.8 −0.056*** −6.0 −0.083** −2.3 −0.125* −1.8 −0.008 −0.7 0.046 0.7 −0.151*** −10.4
Wage per worker, tercile 3 0.016*** 35.6 0.022 0.9 −0.112*** −34.0 −0.039* −1.9 −0.254*** −2.8 −0.438*** −5.1 −0.051*** −4.9 −0.198*** −4.7 −0.127* −1.7 −0.019 −1.6 −0.067 −0.9 −0.265*** −17.8
Labour productivity (sales/employ.), ln −0.008*** −48.4 −0.066*** −9.8 −0.007*** −7.4 −0.002 −0.4 0.050* 1.9 −0.005 −0.2 −0.007*** −2.9 −0.046*** −3.7 0.010 0.6 −0.029*** −5.7 −0.042 −1.5 −0.032*** −6.4
Infrastructure traits                         
Firm exports 0.025*** 43.9 0.030 0.8 0.169*** 27.4 0.036 1.5 -- -- 0.347*** 2.8 0.024** 2.1 −0.052 −1.0 −0.210 −1.1 0.024 1.0 -- -- 0.042*** 2.7
Has 3 or + power outages a month -- -- 0.183*** 8.2 -- -- −0.028* −1.7 0.082 1.3 0.773*** 11.5 0.076*** 7.7 −0.131*** −3.2 -- -- 0.016 1.5 0.167** 2.4 −0.077*** −6.9
Business regulation traits                         
Firm has ISO certification −0.022*** −62.4 −0.103*** −4.1 −0.028*** −4.5 −0.078*** −3.0 −0.000 −0.0 −0.394*** −4.6 0.030*** 3.0 0.001 0.0 −0.310 −1.3 0.007 0.4 0.044 0.6 0.097*** 5.7
Spends 5+ % of time w/regulations 0.044*** 66.2 −0.053*** −2.8 −0.014*** −5.0 0.055*** 3.1 −0.056 −0.9 −0.275*** −4.0 0.009 1.3 0.101*** 2.7 0.076 1.1 0.003 0.3 0.130** 2.2 −0.074*** −6.0
Financial climate and corruption traits                         
Has credit line or loan from a bank 0.028*** 66.6 −0.036 −1.6 −0.015*** −6.2 0.065*** 3.6 0.042 0.7 −0.068 −1.0 0.085*** 11.2 −0.042 −1.4 −0.007 −0.1 0.030*** 3.6 0.030 0.5 0.115*** 10.5
Gives informal payments to officials −0.064*** −66.3 −0.105** −2.3 0.087*** 25.7 -- -- -- -- -- -- −0.006 −0.7 0.059 1.3 0.052 0.5 0.227*** 3.3 −0.485** −2.2 0.035** 2.5
Constant 0.102*** 35.2 0.606*** 7.4 0.250*** 14.2 0.187 1.6 −0.794** −2.2 0.729* 1.7 0.009 0.2 0.845*** 4.5 0.515 1.5 0.284*** 4.3 0.354 0.8 0.658*** 6.9
Observations 1727   45   857   160   33   177   494   41   60   73   58   350  
Adjusted R-squared 0.134   0.526   0.182   0.174   0.828   0.466   0.103   0.615   0.197   0.416   0.257   0.194  
  1. Source: Author’s regression results based on calculations of enterprise survey data. Note: ***p<0.01, **p<0.05, *p<0.1. The high r-squared for Micronesia and Samoa should be read with caution given the small sample size in these countries. It is important to note that 5.9% of respondents for the analysis (i.e. the average for all East Asia Pacific countries analysed here) refused to respond when asked about the total annual cost of labour while 6% reported they did not know, so that a total of 11.9% of observations had to be omitted from the analysis.