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A Systems View Across Time and Space

Table 2 Regression results for the firm level determinants of employment growth.

From: What drives the dynamics of employment growth in firms? Evidence from East Africa

Variables

Model (1)

Model (2)

Model (3)

Model (4)

Firm specific factors

 Firm age

− 0.001*** (0.000)

− 0.000* (0.000)

− 0.001*** (0.000)

− 0.001*** (0.000)

 ln age squared

− 0.029** (0.013)

− 0.029** (0.013)

− 0.022* (0.012)

− 0.028** (0.012)

Size (small = base category)

 Medium

0.026*** (0.008)

   

 Large

0.056*** (0.011)

   

Ownership (domestic = base category)

 Foreign Ownership

0.005 (0.010)

0.009 (0.010)

0.006 (0.010)

0.005 (0.009)

 Use website (1 = yes)

0.003 (0.007)

0.012* (0.007)

0.002 (0.007)

0.002 (0.007)

 Innovation (1 = yes)

0.009** (0.0034)

0.010 (0.007)

0.008 (0.007)

0.009 (0.007)

Business environment factors

 Access to finance (2 = No)

0.020*** (0.007)

0.014* (0.007)

 

0.020*** (0.007)

 Courts (1 = yes)

− 0.012* (0.007)

− 0.012* (0.007)

− 0.013* (0.007)

− 0.012 (0.007)

 Competition (1 = yes)

0.008 (0.007)

0.005 (0.007)

0.007 (0.007)

0.008 (0.007)

 Electricity (1 = yes)

− 0.015* (0.008)

− 0.016* (0.008)

− 0.016* (0.009)

 

 Informal payments

− 0.001** (0.000)

 

− 0.001*** (0.000)

− 0.001** (0.000)

 Business licensing (1 = yes)

0.004 (0.007)

0.003 (0.007)

0.004 (0.008)

0.004 (0.008)

Entrepreneur specific factors

 Gender (1 = female)

− 0.017* (0.009)

− 0.020** (0.009)

− 0.017* (0.009)

− 0.017** (0.009)

 Formal training (1 = yes)

− 0.010 (0.007)

− 0.006 (0.007)

− 0.012* (0.007)

− 0.010 (0.007)

 Managerial experience

0.014** (0.006)

0.007 (0.008)

0.004 (0.008)

0.005 (0.008)

Interactions

 Small X informal payments

 

− 0.002*** (0.001)

  

 Medium X informal payments

 

− 0.001 (0.001)

  

 Large X informal payments

 

0.002 (0.003)

  

 Small X access to finance

  

0.000 (0.000)

 

 Medium X access to finance

  

0.021** (0.010)

 

 Large X access to finance

  

0.044*** (0.012)

 

 Small X electricity obstacle

   

− 0.005 (0.011)

 Medium X electricity obstacle

   

0.018 (0.013)

 Large X electricity obstacle

   

− 0.044*** (0.015)

 Constant

0.153*** (0.058)

0.170*** (0.059)

0.148*** (0.057)

0.141** (0.056)

 Country fixed effect

Yes

Yes

Yes

Yes

 Sector fixed effect

Yes

Yes

Yes

Yes

 Observations

1300

1300

1300

1300

 R2

0.068

0.049

0.066

0.070

  1. Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1