# Table 1. Variable definitions and Sources

|Variables|Definition and source|
|---|---|
|FemHead<br>|Equals to 1 if both any of the owner and top manager are female, and 0 otherwise.<br>Total factor productivity, estimated as the residual from industry-specific production function with log<br>value added as the dependent variable and log capital and log labor as the independent variables. K is|
|TFP|<br>replacement cost of land and machine. L is the number of permanent employees plus 0.5 times the<br>number of temporary employees. Winsorized at tail 2 percent to avoid the outlier issue.|
|log LP|The logarithm of labor productivity (LP). LP is measured as sales over the number of permanent<br>employees. Winsorized at tail 2 percent to avoid the outlier issue.|
|LP-growth|The annualized (Haltiwanger) LP growth rate over 3 years.|
|Foreign|The share of foreign ownership of the firm.|
|OwnLargest|The ownership share of the largest owner.|
|Middle|The firm’s number of permanent employees three years ago was 20-100.|
|Large|The firm’s number of permanent employees three years ago was more than 100.|
|Age6_10|The firm’s number of employees three years ago was 20-100 (more than 100).|
|Age10plus|The firm’s age is between 6 and 10 years (or 10 or more years).|
|Exporter|The firm is an exporter. It is defined as the share of sales for export is greater than 0.|
|Initial LP|The logarithm of initial labor productivity which is measured as the sales over the number of permanent<br>employees threeyears ago.|
|Corruptionc|City-industry-level average of the firm’s answer on whether corruption constitutes an obstacle, ranking<br>from 0 to 1. The subscript c indicates that it is based on city-level average rather than a firm’s answer.|
|Formal Financec|City-industry share of firms having a line of credit or loan from a financial institution. Based on WBES<br>calculation.|
|Trade Creditc|City-industry average of the proportion of total annual sales of goods and services that are paid for after<br>delivery. Based on WBES calculation.|
||Cit-industr share of firms who sa that the directl comete with informal firms It is a measure of the|
|Inf. Competititonc|yy y y y p .<br>importance of the informal sector and its competition with the formal sector. Based on WBES<br>calculation.|
|Outagec|City-industry share of firms that experienced a power outage in the survey year. Based on WBES.|
|Webc|City-industry share of firms that answer that they use websites to conduct business.|
|Cap. Agglomerationc|The share of firms whose number of employees exceeding 50, as a proxy of capacity agglomeration.<br>Computed based on sample firms.|
||The social Institutions and Gender Index (SIGI) index: Discriminatory family code Value, come from the|
|Discriminatory family|<br>OECD Development Centre. Equals to 1 if the value of the index above sample median, otherwise to<br>0.|
|Restricted<br>physical<br>integrity|The social Institutions and Gender Index (SIGI) index: Restricted physical integrity Value, come from the<br>OECD Development Centre. Equals to 1 if the value of the index above sample median, otherwise to<br>0.|
|Good Rule of Law|World Bank’s Governance Indicators: rule of law index. Equals to 1 if the value of the index above sample<br>median, otherwise to 0.|
|High Literacy Rate|<br>Literacy rate, adult female (% of females ages 15 and above), come from WDI. Equals to 1 if the value of<br>the index above sample median, otherwise to 0.|
|Muslim proportion|Country-level Muslim population by percentage in 2010, come from Pew Research Center (2011).<br>Equals to 1 if the value of the index above sample median, otherwise to 0.|
|High Gender equality|CPIA gender equality rating (1=low to 6=high), yearly, come from WDI. Equals to 1 if the value of the<br>index above sample median, otherwise to 0.|
|High Individualism|<br>Individual Empowerment (version 2), come from WVS. It measures the extent to which the people in a<br>society are mentally and habitually empowered to make their own choices and to pursue them in their<br>actions. Equals to 1 if the value of the index above sample median,otherwise to 0.|

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