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Table 5 Correlates of job growth, job creation and job destruction among basic firm-level features and overall business climate traits, East Asia Pacific average over the last 3 years (model 3)

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

  East Asia Pacific without China East Asia Pacific with China
Dependent variable: Job growth rate, annual Job creation Job destruction Job growth rate, annual Job creation Job destruction
(%) (1 or 0) (1 or 0) (%) (1 or 0) (1 or 0)
Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat Coef. tstat
Basic firm-level traits             
Initial firm size, <=5 emp. (ref. 31+) 0.517*** 110.4 0.656*** 135.4 −0.557*** −121.6 0.389*** 204.3 0.453*** 149.3 −0.358*** −160.4
Initial firm size, 6–15 emp. 0.151*** 35.0 0.083*** 18.6 −0.203*** −48.0 0.061*** 43.4 −0.021*** −9.4 −0.087*** −52.2
Initial firm size, 16–30 emp. 0.067*** 12.7 −0.022*** −4.0 −0.062*** −12.0 0.013*** 7.6 −0.062*** −22.0 −0.018*** −8.6
Firms <10 years old (ref. >=20) −0.034*** −10.4 0.119*** 35.1 0.036*** 11.3 0.017*** 11.6 0.179*** 76.7 −0.044*** −25.9
Firms 10–19 years old 0.004 1.1 0.021*** 6.2 0.036*** 11.5 0.025*** 17.9 0.199*** 87.7 −0.032*** −19.2
City w/ 1 mil. or capital (ref. small city) 0.005** 2.0 −0.124*** −47.8 0.053*** 21.7 0.015*** 9.3 −0.120*** −47.3 0.056*** 30.1
Manufacturing (ref. other sectors) −0.031*** −4.1 −0.057*** −7.4 0.072*** 9.8 0.045*** 16.2 0.164*** 36.5 −0.172*** −52.3
Services −0.068*** −8.9 −0.084*** −10.6 −0.020*** −2.7 0.032*** 11.3 0.170*** 37.7 −0.174*** −52.5
Formally registered when opened 0.023*** 6.9 0.029*** 8.4 0.003 1.0 0.003** 2.1 −0.042*** −18.0 −0.032*** −18.6
Sole proprietorship −0.174*** −50.1 −0.029*** −8.1 −0.070*** −20.8 −0.038*** −34.1 −0.053*** −29.2 −0.039*** −29.7
Firm is foreign owned, partly or fully 0.056*** 7.6 0.237*** 31.3 −0.070*** −9.7 0.017*** 7.4 0.140*** 38.2 −0.022*** −8.3
Firm is partly government owned −0.133*** −8.7 −0.065*** −4.1 0.129*** 8.6 −0.024*** −4.5 0.050*** 5.8 0.016** 2.6
Share of female employees −0.055*** −14.8 −0.021*** −5.6 −0.075*** −20.6 −0.050*** −27.1 −0.090*** −30.2 −0.060*** −27.4
Wage and productivity traits             
Wage per worker, tercile 2 (ref. ter. 1) −0.082*** −10.4 −0.308*** −37.9 0.149*** 19.4 −0.015*** −11.4 0.040*** 18.6 −0.006*** −3.5
Wage per worker, tercile 3 −0.171*** −20.0 −0.409*** −46.1 0.209*** 24.9 −0.075*** −22.9 −0.112*** −21.3 0.208*** 53.6
Labour productivity (sales/employ.), ln −0.013*** −11.3 −0.005*** −4.0 −0.005*** −4.7 −0.015*** −30.9 −0.026*** −34.3 −0.016*** −28.3
Technology and infrastructure traits             
Firm exports 0.097*** 17.7 0.013** 2.4 −0.075*** −14.0 0.004** 2.3 −0.075*** −26.9 0.061*** 30.1
Email use for doing business −0.032*** −8.3 0.074*** 18.7 −0.086*** −23.0 0.020*** 14.1 0.157*** 69.4 −0.012*** −7.1
Has 3 or + power outages a month 0.048*** 16.4 0.016*** 5.2 0.033*** 11.6 0.052*** 29.0 −0.024*** −8.2 0.045*** 21.0
Business regulation traits             
Firm has ISO certification 0.012** 2.1 0.005 0.8 0.093*** 16.5 0.028*** 21.5 0.004* 1.7 −0.011*** −7.0
Firm has external auditor 0.009* 1.8 0.093*** 18.8 −0.130*** −27.9 0.033*** 25.8 0.055*** 27.2 −0.032*** −21.1
Spends 5+ % of time w/ regulations −0.034*** −10.0 0.009** 2.6 −0.060*** −18.5 −0.004*** −2.7 −0.026*** −10.4 −0.050*** −27.7
Financial climate traits             
Has credit line or loan from a bank 0.045*** 14.9 0.175*** 56.1 −0.063*** −21.3 0.006*** 4.7 0.079*** 39.2 −0.009*** −6.1
Has overdraft facility with their bank 0.036*** 7.7 0.091*** 19.0 −0.061*** −13.6 0.007*** 5.6 0.007*** 3.5 −0.024*** −15.9
Tax and corruption traits             
Inspected by tax officials last year −0.023*** −6.4 −0.043*** −11.5 0.025*** 7.1 −0.012*** −9.5 0.061*** 29.7 −0.035*** −23.5
Gives informal payments to officials 0.118*** 30.7 0.009** 2.3 −0.064*** −17.0 0.064*** 33.3 −0.049*** −15.6 0.007*** 3.3
Country fixed effects yes   yes   yes   yes   yes   yes  
Constant 0.279** 2.1 0.859*** 6.4 0.453*** 3.6 0.097 1.3 0.307*** 2.6 0.640*** 7.4
Observations 1,509   1,517   1,517   2,153   2,162   2,162  
Adjusted R-squared 0.228   0.365   0.224   0.197   0.282   0.201  
  1. Source: Author’s regression results based on calculations of enterprise survey data. Note: The same note applies as in Table 3.