| . | OLS Regressions . | IV Regressions . | ||
|---|---|---|---|---|
| . | (1) . | (2) . | (3) . | (4) . |
| Access to finance | 0.184* | 0.206* | 0.175* | 0.175** |
| (7.36) | (6.68) | (6.27) | (3.13) | |
| Private loan (yes = 1) | −0.120* | −0.125* | −2.418* | −2.540* |
| (−4.30) | (−3.97) | (−4.51) | (−4.71) | |
| Public loan (yes = 1) | −0.113* | -0.0693*** | 0.497 | 0.608*** |
| (−3.66) | (−2.11) | (1.82) | (2.20) | |
| Access to finance × Private loan | 0.00938 | 0.234*** | ||
| (0.18) | (2.00) | |||
| Access to finance × Public loan | −0.200** | −0.415*** | ||
| (−2.70) | (−2.16) | |||
| Electricity | −0.0335 | −0.0334 | −0.0186 | −0.0186 |
| (−1.40) | (−1.40) | (−0.71) | (−0.72) | |
| Transportation | −0.0231 | −0.0231 | 0.00365 | 0.00375 |
| (−0.82) | (−0.82) | (0.11) | (0.11) | |
| Customs and trade regulations | −0.0982** | −0.0972** | 0.0131 | 0.0158 |
| (−2.97) | (−2.94) | (0.29) | (0.35) | |
| Informal sector | 0.0679** | 0.0675** | 0.0364 | 0.0359 |
| (2.69) | (2.68) | (1.32) | (1.30) | |
| Access to land | 0.00510 | 0.00663 | -0.0754*** | -0.0665 |
| (0.17) | (0.22) | (−2.17) | (−1.91) | |
| Crime, theft | −0.0367 | −0.0372 | −0.0622 | −0.0641 |
| (−1.18) | (−1.19) | (−1.77) | (−1.82) | |
| Tax rates | −0.0465 | −0.0468 | -0.0659*** | -0.0670*** |
| (−1.85) | (−1.86) | (−2.25) | (−2.29) | |
| Tax administration | 0.0525 | 0.0530 | 0.0805*** | 0.0830*** |
| (1.77) | (1.78) | (2.35) | (2.42) | |
| Business licensing | −0.0326 | −0.0327 | -0.0927*** | -0.0917*** |
| (−1.06) | (−1.06) | (−2.50) | (−2.47) | |
| Political instability | 0.0176 | 0.0183 | −0.0190 | −0.0175 |
| (0.59) | (0.61) | (−0.59) | (−0.54) | |
| Corruption | −0.0371 | −0.0380 | −0.0184 | −0.0186 |
| (−1.44) | (−1.47) | (−0.60) | (−0.61) | |
| Courts | 0.0808*** | 0.0810*** | 0.0875*** | 0.0826*** |
| (2.45) | (2.45) | (2.31) | (2.18) | |
| Labor regulations | 0.0178 | 0.0181 | 0.105** | 0.104** |
| (0.54) | (0.55) | (2.79) | (2.75) | |
| Inadequate education workers | 0.0328 | 0.0321 | 0.110** | 0.108** |
| (1.12) | (1.10) | (3.10) | (3.04) | |
| Country dummies | YES | YES | YES | YES |
| Sector dummies | YES | YES | YES | YES |
| Constant | −0.539*** | −0.547*** | 0.0451 | 0.0577 |
| (−2.03) | (−2.05) | (0.24) | (0.31) | |
| N | 18,025 | 18,025 | 14,828 | 14,828 |
| R∧2 | 0.014 | 0.015 | 0.013 | 0.014 |
| . | OLS Regressions . | IV Regressions . | ||
|---|---|---|---|---|
| . | (1) . | (2) . | (3) . | (4) . |
| Access to finance | 0.184* | 0.206* | 0.175* | 0.175** |
| (7.36) | (6.68) | (6.27) | (3.13) | |
| Private loan (yes = 1) | −0.120* | −0.125* | −2.418* | −2.540* |
| (−4.30) | (−3.97) | (−4.51) | (−4.71) | |
| Public loan (yes = 1) | −0.113* | -0.0693*** | 0.497 | 0.608*** |
| (−3.66) | (−2.11) | (1.82) | (2.20) | |
| Access to finance × Private loan | 0.00938 | 0.234*** | ||
| (0.18) | (2.00) | |||
| Access to finance × Public loan | −0.200** | −0.415*** | ||
| (−2.70) | (−2.16) | |||
| Electricity | −0.0335 | −0.0334 | −0.0186 | −0.0186 |
| (−1.40) | (−1.40) | (−0.71) | (−0.72) | |
| Transportation | −0.0231 | −0.0231 | 0.00365 | 0.00375 |
| (−0.82) | (−0.82) | (0.11) | (0.11) | |
| Customs and trade regulations | −0.0982** | −0.0972** | 0.0131 | 0.0158 |
| (−2.97) | (−2.94) | (0.29) | (0.35) | |
| Informal sector | 0.0679** | 0.0675** | 0.0364 | 0.0359 |
| (2.69) | (2.68) | (1.32) | (1.30) | |
| Access to land | 0.00510 | 0.00663 | -0.0754*** | -0.0665 |
| (0.17) | (0.22) | (−2.17) | (−1.91) | |
| Crime, theft | −0.0367 | −0.0372 | −0.0622 | −0.0641 |
| (−1.18) | (−1.19) | (−1.77) | (−1.82) | |
| Tax rates | −0.0465 | −0.0468 | -0.0659*** | -0.0670*** |
| (−1.85) | (−1.86) | (−2.25) | (−2.29) | |
| Tax administration | 0.0525 | 0.0530 | 0.0805*** | 0.0830*** |
| (1.77) | (1.78) | (2.35) | (2.42) | |
| Business licensing | −0.0326 | −0.0327 | -0.0927*** | -0.0917*** |
| (−1.06) | (−1.06) | (−2.50) | (−2.47) | |
| Political instability | 0.0176 | 0.0183 | −0.0190 | −0.0175 |
| (0.59) | (0.61) | (−0.59) | (−0.54) | |
| Corruption | −0.0371 | −0.0380 | −0.0184 | −0.0186 |
| (−1.44) | (−1.47) | (−0.60) | (−0.61) | |
| Courts | 0.0808*** | 0.0810*** | 0.0875*** | 0.0826*** |
| (2.45) | (2.45) | (2.31) | (2.18) | |
| Labor regulations | 0.0178 | 0.0181 | 0.105** | 0.104** |
| (0.54) | (0.55) | (2.79) | (2.75) | |
| Inadequate education workers | 0.0328 | 0.0321 | 0.110** | 0.108** |
| (1.12) | (1.10) | (3.10) | (3.04) | |
| Country dummies | YES | YES | YES | YES |
| Sector dummies | YES | YES | YES | YES |
| Constant | −0.539*** | −0.547*** | 0.0451 | 0.0577 |
| (−2.03) | (−2.05) | (0.24) | (0.31) | |
| N | 18,025 | 18,025 | 14,828 | 14,828 |
| R∧2 | 0.014 | 0.015 | 0.013 | 0.014 |
IV = instrumental variable, OLS = ordinary least squares.
Notes: *** = 10% level of significance, ** = 5% level of significance, * = 1% level of significance. t statistics in parentheses. Heteroscedasticity-consistent standard errors. See text for the IV procedure implemented using a first-stage probit for public and private credit.
Source: Authors’ calculations.