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Table 7 Interaction between innovation and the business environment

From: Innovation and employment growth: evidence from manufacturing firms in Africa

  (1) (2) (3)
Employment growth Employment growth Employment growth
Innov (0 = no innovation)
 1 (= Process/Product) 0.07*   
(0.0322)   
 2 (= Process × Product) 0.1**   
(0.0371)   
Process (1 = yes)   0.10**  
  (0.0304)  
Product (1 = yes)    0.09**
   (0.0314)
Electricity (1 = yes) 0.01 0.01 − 0.003
(0.0190) (0.0181) (0.0168)
Bureaucracy − 0.0006 − 0.0006 − 0.0007+
(0.000420) (0.000399) (0.000375)
Bribe 0.001 0.002 0.0005
(0.00142) (0.00144) (0.00131)
Competition − 0.007 − 0.005 − 0.02
(0.0186) (0.0172) (0.0160)
Innovation × Electricity
 1 − 0.09**   
(0.0340)   
 2 − 0.09**   
(0.0345)   
Innovation × Bureaucracy 0.00010   
(0.000312)   
Innovation × Bribe − 0.0005   
(0.000989)   
Innovation × Competition
 1 − 0.02   
(0.0308)   
 2 − 0.0007   
(0.0285)   
Process × Electricity   − 0.08**  
  (0.0286)  
Process × Bureaucracy   0.00008  
  (0.000525)  
Process × Bribe   − 0.001  
  (0.00190)  
Process × Competition   − 0.009  
  (0.0245)  
Product × Electricity    − 0.07*
   (0.0299)
Product × Bureaucracy    0.0003
   (0.000531)
Product × Bribe    0.0004
   (0.00189)
Product × Competition    0.02
   (0.0248)
Country fixed effects Yes Yes Yes
ISIC Yes Yes Yes
Constant 0.4*** 0.4*** 0.4***
(0.0570) (0.0567) (0.0558)
N 5389 5337 5370
R 2 0.068 0.065 0.068
Adj. R2 0.056 0.054 0.057
  1. Note: (1) All models are pooled OLS with standard errors adjusted for clusters using unique firm identifiers. (2) Standard errors in parentheses. (3) Significance levels: +p < 0.10, *p < 0.05, **p < 0.01, ***p < 0.001. (4) All models control for firm-specific characteristics
  2. Source: Authors’ own computation based on WBES, 2018