Table 3: Rule of Law and Margins of Export: Effects on Volume, Scope and Export per Variety

|**_Dep. Variable_**:|**_ln_**|**_(Export)_**_ji_|_st_|**_ln(No._**|**_of Variet_**|**_ies)_**_jist_|**_ln(Expo_**|**_rt per Var_**|**_iety)_**_jist_|
|---|---|---|---|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|
|Rule of law|-0.477<sup>_∗∗∗_</sup>|-0.354<sup>_∗∗∗_</sup>|-0.308<sup>_∗∗∗_</sup>|-0.285<sup>_∗∗∗_</sup>|-0.175<sup>_∗∗∗_</sup>|-0.162<sup>_∗∗∗_</sup>|-0.192<sup>_∗∗∗_</sup>|-0.179<sup>_∗∗∗_</sup>|-0.146<sup>_∗∗∗_</sup>|
|Rule of law x Inst-Int|0.683<sup>_∗∗∗_</sup>|0.532<sup>_∗∗∗_</sup>|0.474<sup>_∗∗∗_</sup>|0.361<sup>_∗∗∗_</sup>|0.225<sup>_∗∗∗_</sup>|0.209<sup>_∗∗∗_</sup>|0.322<sup>_∗∗∗_</sup>|0.307<sup>_∗∗∗_</sup>|0.265<sup>_∗∗∗_</sup>|
|lnH|-0.553<sup>_∗∗∗_</sup>|-0.410<sup>_∗∗∗_</sup>|-0.354<sup>_∗∗∗_</sup>|-0.458<sup>_∗∗∗_</sup>|-0.339<sup>_∗∗∗_</sup>|-0.319<sup>_∗∗∗_</sup>|-0.095|-0.071|-0.035|
|lnH x H-Int|0.200<sup>_∗∗∗_</sup>|0.174<sup>_∗∗∗_</sup>|0.158<sup>_∗∗∗_</sup>|0.134<sup>_∗∗∗_</sup>|0.110<sup>_∗∗∗_</sup>|0.105<sup>_∗∗∗_</sup>|0.066<sup>_∗∗∗_</sup>|0.063<sup>_∗∗∗_</sup>|0.053<sup>_∗∗∗_</sup>|
|lnK|-0.686<sup>_∗∗∗_</sup>|-0.667<sup>_∗∗∗_</sup>|-0.640<sup>_∗∗∗_</sup>|-0.086|-0.073|-0.060|-0.601<sup>_∗∗∗_</sup>|-0.594<sup>_∗∗∗_</sup>|-0.579<sup>_∗∗∗_</sup>|
|lnK x K-Int|-0.582<sup>_∗∗∗_</sup>|-0.545<sup>_∗∗∗_</sup>|-0.464<sup>_∗∗∗_</sup>|-0.593<sup>_∗∗∗_</sup>|-0.520<sup>_∗∗∗_</sup>|-0.493<sup>_∗∗∗_</sup>|0.011|-0.025|0.030|
|NR|-0.016<sup>_∗∗∗_</sup>|-0.009<sup>_∗∗∗_</sup>|-0.007<sup>_∗∗_</sup>|-0.012<sup>_∗∗∗_</sup>|-0.006<sup>_∗∗∗_</sup>|-0.005<sup>_∗∗∗_</sup>|-0.004<sup>_∗_</sup>|-0.003|-0.002|
|NR x N-Int|-0.018<sup>_∗∗∗_</sup>|-0.017<sup>_∗∗∗_</sup>|-0.017<sup>_∗∗∗_</sup>|-0.007<sup>_∗∗∗_</sup>|-0.006<sup>_∗∗∗_</sup>|-0.006<sup>_∗∗∗_</sup>|-0.011<sup>_∗∗∗_</sup>|-0.011<sup>_∗∗∗_</sup>|-0.011<sup>_∗∗∗_</sup>|
|lnESTABLISH|0.063<sup>_∗∗∗_</sup>|0.054<sup>_∗∗∗_</sup>|0.050<sup>_∗∗∗_</sup>|0.021<sup>_∗∗∗_</sup>|0.012<sup>_∗∗∗_</sup>|0.011<sup>_∗∗∗_</sup>|0.042<sup>_∗∗∗_</sup>|0.042<sup>_∗∗∗_</sup>|0.039<sup>_∗∗∗_</sup>|
|lnGDPE|3.065<sup>_∗∗∗_</sup>|2.471<sup>_∗∗∗_</sup>|2.271<sup>_∗∗∗_</sup>|1.584<sup>_∗∗∗_</sup>|1.084<sup>_∗∗∗_</sup>|1.022<sup>_∗∗∗_</sup>|1.481<sup>_∗∗∗_</sup>|1.387<sup>_∗∗∗_</sup>|1.249<sup>_∗∗∗_</sup>|
|lnGDPI|0.300<sup>_∗∗∗_</sup>|0.302<sup>_∗∗∗_</sup>|0.302<sup>_∗∗∗_</sup>|0.044<sup>_∗∗_</sup>|0.043<sup>_∗∗_</sup>|0.043<sup>_∗∗_</sup>|0.257<sup>_∗∗∗_</sup>|0.259<sup>_∗∗∗_</sup>|0.258<sup>_∗∗∗_</sup>|
|No. of Observations|720679|720679|720679|720679|720679|720679|720679|720679|720679|
|F-Statistic|348.941|344.071|77.717|826.933|861.994|111.526|103.931|95.689|39.165|
|Prob _>_ F-Statistic|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|
|R<sup>2</sup>|0.704|0.706|0.706|0.835|0.838|0.838|0.525|0.525|0.525|
| ̄_R_<sup>2</sup>|0.701|0.702|0.702|0.833|0.836|0.836|0.519|0.519|0.520|

_∗ ∗∗ ∗∗∗ p <_ 0 _._ 1, _p <_ 0 _._ 05, _p <_ 0 _._ 01. Each regression includes unreported constant term as well as coefficients for a full set of dummies for exporter-importer pair, sector and year. Standard errors are clustered by exporter-importer pairs for all regressions. Columns 1, 4 and 7 control for the conventional Heckman-type selection bias; the rest additionally correct for firm selection into exporting, using either the polynomials of z – i.e., _z_ , _z_<sup>_2_</sup> and _z_<sup>_3_</sup> – (Columns 2, 5, 8) or a dummy variable for each of the 50 bins formed on the basis of the probability of exporting saved from the first column of the Probit regression in Table 2 (Columns 3, 6, 9).