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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.