Table 8: Cobb-Douglas Production Function Estimations Sri Lanka Invesment Climate / Business Environment Surveys 2003 & 2010 Own Response + Cell Averages

|**_Dependent variable is natural log of total annual sales_**|(1)|(2)|(3)|(|4)|
|---|---|---|---|---|---|
|**_Sample_**<br>**_Specification_**|Pooled|2003<br>(1),2003 only|2010<br>(1),2010 only|Pooled<br>FullyInteracted|2010 Interactions|
|Ln(labor)|0.387+++<br>(0.076)|0.384+++<br>(0.080)|0.427++<br>(0.178)|0.378+++<br>(0.077)||
|ln(capital)|0.083++<br>(0.039)|0.159+++<br>(0.047)|0.007<br>(0.060)|0.078+<br>(0.040)||
|ln(materials)|0.458+++<br>(0.029)|0.430+++<br>(0.037)|0.484+++<br>(0.045)|0.462+++<br>(0.029)||
|>10% government ownership|-0.149<br>(0.180)|-0.147<br>(0.188)|-0.871++<br>(0.405)|-0.142<br>(0.181)|-0.830++<br>(0.324)|
|Losses from crime as a percent of sales|-0.000<br>(0.001)|0.025<br>(0.018)|-0.000<br>(0.000)|0.026<br>(0.019)|-0.026<br>(0.019)|
|Has formal training program|0.062<br>(0.079)|0.185+<br>(0.100)|-0.214<br>(0.151)|0.166+<br>(0.094)|-0.280<br>(0.173)|
|Has formal training program (cell average)|0.482<br>(0.312)|1.125<br>(0.771)|-0.267<br>(0.476)|0.399<br>(0.607)|0.323<br>(0.713)|
|Firm exports|0.005<br>(0.096)|0.204+<br>(0.117)|-0.273<br>(0.180)|0.152<br>(0.116)|-0.369+<br>(0.207)|
|Firm exports (cell)|0.122<br>(0.294)|1.381+<br>(0.794)|-0.134<br>(0.348)|0.575<br>(0.588)|-0.666<br>(0.711)|
|Firm is direct importer|0.260++<br>(0.126)|0.375++<br>(0.146)|0.033<br>(0.222)|0.398+++<br>(0.148)|-0.367<br>(0.248)|
|Firm is direct importer (cell)|-0.329<br>(0.329)|-0.780<br>(0.725)|-0.713<br>(0.548)|-0.514<br>(0.552)|0.272<br>(0.764)|
|Has >10% foreign ownership|0.320+++<br>(0.108)|0.310+++<br>(0.113)|0.350<br>(0.244)|0.345+++<br>(0.114)|-0.106<br>(0.274)|
|Has >10% foreign ownership (cell)|0.844++<br>(0.385)|1.808+++<br>(0.593)|1.182+<br>(0.656)|1.572+++<br>(0.593)|-1.519+<br>(0.827)|
|Has internet access (web and/or e-mail)|0.293+++<br>(0.102)|0.125<br>(0.132)|0.562+++<br>(0.157)|0.143<br>(0.131)|0.375+<br>(0.200)|
|Has internet access (web and/or e-mail) (cell)|0.221<br>(0.337)|0.665<br>(0.536)|0.514<br>(0.421)|0.399<br>(0.518)|-0.033<br>(0.626)|
|Firm introduced new product/process|0.028<br>(0.085)|-0.201+<br>(0.118)|0.272++<br>(0.123)|-0.200<br>(0.126)|0.454+++<br>(0.176)|
|Firm introduced new product/process (cell)|0.546+<br>(0.288)|-0.409<br>(1.188)|0.719++<br>(0.307)|-0.142<br>(0.922)|0.732<br>(0.992)|
|Share of sales on credit|0.000|-0.000|0.001|-0.000|0.001|
||(0.001)|(0.001)|(0.002)|(0.001)|(0.002)|
|Share of investment financed externally|-0.001<br>(0.001)|-0.001<br>(0.001)|-0.004<br>(0.003)|-0.001<br>(0.001)|-0.004<br>(0.003)|
|Percent of electricity from generators|0.161<br>(0.104)|0.011<br>(0.130)|0.368++<br>(0.162)|0.059<br>(0.129)|0.192<br>(0.197)|
|Percent of electricity from generators (cell)|-0.018<br>(0.275)|-0.296<br>(0.550)|0.874++<br>(0.352)|-0.224<br>(0.487)|0.263<br>(0.555)|
|Constant|3.300+++<br>(0.400)|2.543+++<br>(0.534)|4.085+++<br>(0.986)|3.30<br>(0.|7+++<br>488)|
|Observations<br>|738<br>|408<br>|330<br>|7<br>|38<br>|
|R-squared<br>Adjusted R-squared|0.837<br>0.827|0.853<br>0.840|0.825<br>0.800|0.<br>0.|844<br>829|
|<br>Year fixed effects<br>|Y<br>|N<br>|N<br>||Y<br>|
|Size fixed effects<br>Industryfixed effects|Y<br>Y|Y<br>Y|Y<br>Y||Y<br>Y|

Standard errors in parentheses + p<0.1 ++ p<.05 +++ p<.01 40