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A Systems View Across Time and Space

Table 4 Firm level determinants of employment growth in the manufacturing sector.

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

− 0.000 (0.000)

− 0.000 (0.000)

− 0.000 (0.000)

− 0.001 (0.000)

 ln age squared

− 0.027 (0.021)

− 0.028 (0.021)

− 0.025 (0.021)

− 0.028 (0.021)

Size (small = base category)

 Medium

0.021* (0.012)

   

 Large

0.036** (0.015)

   

Ownership (domestic = base category)

 Foreign ownership

0.018 (0.014)

0.022 (0.014)

0.018 (0.014)

0.020 (0.014)

 Use website (1 = yes)

0.006 (0.011)

0.013 (0.011)

0.005 (0.011)

0.007 (0.011)

 Innovation (1 = yes)

0.018 (0.011)

0.019* (0.011)

0.019* (0.011)

0.017 (0.011)

Business environment factors

    

 Access to finance (2 = No)

0.015 (0.011)

0.010 (0.011)

 

0.015 (0.011)

 Courts (1 = yes)

− 0.011 (0.012)

− 0.011 (0.012)

− 0.011 (0.012)

− 0.012 (0.012)

 Competition (1 = yes)

0.017* (0.011)

0.015 (0.011)

0.017 (0.011)

0.019* (0.011)

 Electricity (1 = yes)

− 0.007 (0.015)

− 0.007 (0.015)

− 0.008 (0.015)

 

 Informal payments

− 0.000 (0.001)

 

− 0.000 (0.001)

− 0.000 (0.001)

 Business licensing (1 = yes)

− 0.002 (0.012)

− 0.003 (0.012)

− 0.003 (0.012)

− 0.001 (0.012)

Entrepreneur specific factors

 Gender (1 = female)

− 0.011 (0.015)

− 0.014 (0.015)

− 0.011 (0.015)

− 0.012 (0.015)

 Formal training (1 = yes)

− 0.020* (0.011)

− 0.017 (0.011)

− 0.020* (0.011)

− 0.020* (0.011)

 Managerial experience

− 0.005 (0.013)

− 0.001 (0.013)

− 0.006 (0.013)

− 0.006 (0.013)

Interactions

 Small X informal payments

 

− 0.000 (0.001)

  

 Medium X informal payments

 

− 0.001 (0.001)

  

 Large X informal payments

 

0.001 (0.004)

  

 Small X access to finance

  

0.019 (0.019)

 

 Medium X access to finance

  

0.031 (0.020)

 

 Large X access to finance

  

0.067*** (0.023)

 

 Small X electricity obstacle

   

0.049* (0.028)

 Medium X electricity obstacle

   

− 0.037** (0.015)

 Large X electricity obstacle

   

0.000 (0.000)

 Constant

0.138 (0.099)

0.154 (0.099)

0.129 (0.100)

0.133 (0.100)

 Country fixed effects

Yes

Yes

Yes

Yes

 Observations

559

559

559

559

 R2

0.054

0.043

0.058

0.057

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