Table 10.2: TURKEY, Extended production function and comparison of ICA method with extensions

||**Dependent variable: log of total sales**||**ICA metho**|**d and extensions**||**Complete case**<sup>**4**</sup>|**Multiple imputation**<br>|
|---|---|---|---|---|---|---|---|
|||**Original ICA**|**meth.**<sup>**1**</sup>|**Random ICA m.**<sup>**2**</sup>|**ICA m. on inputs**<sup>**3**</sup>||**(Switching regr.)**<sup>**5**</sup>|
|**Category**|**Variable**|**Coeff.**<br>**std. err.**|**Boot. st. er.**|**Coeff.**<br>**std. err.**|**Coeff.**<br>**std. err.**|**Coeff.**<br>**std. err.**|**Coeff.**<br>**std. err.**|
|PF variables|Log-employment<br>Log-materials<br>Log-capital|0.416<br>[0.0492]***<br>0.4184<br>[0.0404]***<br>0.0371<br>[0.0165]**|<br>(0.1088)***<br> <br>(0.0249)***<br>(0.0428)|0.3819<br>[0.0501]***<br>0.4137<br>[0.0392]***<br>0.0193<br>[0.0198]|0.5106<br>[0.0558]***<br>0.4615<br>[0.0484]***<br>0.0686<br>[0.0232]***|0.4002<br>[0.0885]***<br>0.5332<br>[0.0494]***<br>0.0639<br>[0.0271]**|0.3446<br>[0.0524]***<br>0.5779<br>[0.0316]***<br>0.0603<br>[0.0246]**|
|Infrastructures|<br>Days to clearcustomsfor imports (a)<br>Dummy for e-mail|-0.0707<br>[0.0686]<br>0.2866<br>[0.0920]***|(0.0688)<br>(0.1365)**|-0.1133<br>[0.0776]<br>0.3833<br>[0.1048]***|-0.0711<br>[0.0705]<br>0.3072<br>[0.1054]***|-0.1594<br>[0.0856]*<br>0.0317<br>[0.1295]|-0.1318<br>[0.0660]**<br>0.1729<br>[0.0754]**|
|Red tape,|Security expenses (b)|-0.0246<br>[0.0828]|(0.0011)***|0.0137<br>[0.0836]|-0.0861<br>[0.0919]|-0.0468<br>[0.0786]|-0.0215<br>[0.0587]|
|corruption and|<br>Payments to deal withbureaucraticissues (a)|-0.011<br>[0.0020]***|<br>(0.0077)|-0.0108<br>[0.0021]***|-0.0102<br>[0.0021]***|-0.0084<br>[0.0014]***|-0.0073<br>[0.0011]***|
|crime|Sales declaredfortaxes (a)|-0.0226<br>[0.0057]***|<br>(0.0045)***|-0.0197<br>[0.0061]***|-0.0151<br>[0.0065]**|-0.0184<br>[0.0082]**|-0.0159<br>[0.0051]***|
||Numberof inspections (b)|0.0046<br>[0.0044]|(0.0597)|0.001<br>[0.0049]|0.005<br>[0.0044]|-0.0019<br>[0.0038]|0.0000<br>[0.0036]|
||Payments to obtaina contractwiththe government (b)|-0.0373<br>[0.0315]|(0.0058)***|-0.0345<br>[0.0357]|-0.0217<br>[0.0368]|-0.0257<br>[0.0360]|-0.0354<br>[0.0236]|
||Production lost due to absenteeism(b)|-0.0054<br>[0.0043]|(0.0367)|-0.0079<br>[0.0051]|-0.005<br>[0.0039]|-0.0107<br>[0.0054]*|-0.0110<br>[0.0036]***|
||Dummyfor informalcompetition(b)|0.0044<br>[0.0295]|(0.1203)|-0.0083<br>[0.0323]|0.0207<br>[0.0279]|-0.0015<br>[0.0315]|-0.0062<br>[0.0232]|
||Delay in obtaining a water supply (a)|-0.1325<br>[0.0634]**|(0.0993)|-0.1346<br>[0.0688]*|-0.1419<br>[0.0863]|-0.0825<br>[0.0785]|-0.0965<br>[0.0571]*|
|Finance|Dummyforcreditline|0.068<br>[0.0868]|(0.1383)|0.0967<br>[0.0905]|0.0888<br>[0.1061]|0.0657<br>[0.0685]|0.0699<br>[0.0719]|
||Dummyforexternalauditory (a)|0.0863<br>[0.0753]|(0.1117)|0.0992<br>[0.0739]|0.1012<br>[0.0791]|0.1385<br>[0.0709]*|0.0781<br>[0.0521]|
||Loans in foreign currency (b)|0.0018<br>[0.0009]**|(0.0010)*|0.0015<br>[0.0008]*|0.0018<br>[0.0010]*|0.0005<br>[0.0009]|0.0009<br>[0.0008]|
|Quality, innov.|Staff withuniversity education(b)|0.0095<br>[0.0026]***|<br>(0.0018)***|0.0107<br>[0.0028]***|0.01<br>[0.0040]**|0.008<br>[0.0035]**|0.0060<br>[0.0032]*|
|and labor skills|<br>Staff-part time workers|-0.008<br>[0.0030]**|(0.0222)|-0.0077<br>[0.0032]**|-0.0102<br>[0.0029]***|-0.0069<br>[0.0027]**|-0.0067<br>[0.0019]***|
|Other control|Production lost due to strikes (b)|-0.1689<br>[0.0634]**|(0.0351)***|-0.1063<br>[0.0650]|-0.1538<br>[0.0671]**|-0.1765<br>[0.0521]***|-0.1092<br>[0.0564]*|
|variables|Dummyfor recently privatizedfirm|1.0606<br>[0.2812]***|<br>(0.2511)***|1.0239<br>[0.2791]***|1.0215<br>[0.3100]***|1.2627<br>[0.3162]***|0.8012<br>[0.2884]***|
||Dummy for competition against imported products|0.2069<br>[0.0962]**|(0.2737)|0.2013<br>[0.0962]**|0.2096<br>[0.1041]*|0.0156<br>[0.0823]|0.1021<br>[0.0665]|
||<br>Constant|3.5299<br>[0.7190]***||4.6379<br>[0.7023]***|1.4306<br>[0.5738]**|<br>2.6911<br>[0.7730]***|<br>2.6126<br>[0.4577]***|
||Industry/region/size/time dummies|Yes||Yes|Yes|Yes|Yes|
||Observations|1684||1684|1360|792|1646|
||R-squared|0.73||0.68|0.75|0.85|-|

Notes of Table 10.1 Source: Authors’ calculations with ICSs.

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