|**Dependent**|Table 11.1: INDIA, Extended product<br>**variable: log of total sales**|ion function and c<br>**ICA Mh**|omparison<br>**d**<sup>**1**</sup>|of ICA method with H<br>**He**|eckman models<br>**ckman models**<sup>**2**</sup>||
|---|---|---|---|---|---|---|
|||**et**|**o**|**Heckman on comp case**|**Heckman repla**|**cing inputs**|
|**Category**|**Variable**|**Coeff.**<br>**std. err.**|**Boot. s.e**|**Coeff.**<br>**std. err.**|**Coeff.**<br>**std. err.**|**Boot. s.e**|
|PF variables|Log-employment|0.1027<br>[0.0341]***|<br>(0.0306)***|0.1127<br>[0.0160]***|0.0806<br>[0.0184]***|<br>(0.0452)***|
||Log-materials|0.7989<br>[0.0185]***|<br>(0.0462)***|0.7998<br>[0.0069]***|0.8121<br>[0.0070]***|<br>(0.0567)***|
||Log-capital|0.0676<br>[0.0239]***|<br>(0.0153)***|0.0477<br>[0.0062]***|0.0578<br>[0.0070]***|(0.0168)***|
|Infrastructure|<br>Longest # ofdays to clearcustomsforexports (a)|-0.0125<br>[0.0263]|(0.0376)|-0.0451<br>[0.0155]***|-0.0077<br>[0.0150]|(0.1542)|
||Dummyfor owngenerator|0.0538<br>[0.0422]|(0.0424)|0.0466<br>[0.0229]**|0.0769<br>[0.0265]***|<br>(0.0064)***|
||Watersupplyfrompublic sources (b)|0.0014<br>[0.0005]***|<br>(0.0008)*|0.0014<br>[0.0003]***|0.0012<br>[0.0003]***|<br>(0.0460)***|
||Shipmentlossesinthe domesticmarket (b)|-0.0047<br>[0.0039]|(0.0128)|-0.0029<br>[0.0033]|-0.0022<br>[0.0029]|(0.1197)|
||Dummyforowntransport|0.0238<br>[0.0475]|(0.0861)|0.0438<br>[0.0283]|-0.0063<br>[0.0336]|(0.0742)|
||Dummyfor web page|0.0402<br>[0.0394]|(0.0264)|0.0061<br>[0.0221]|0.0212<br>[0.0263]|(0.0051)**|
||Dummy for security|0.0467<br>[0.0423]|(0.1407)|0.0487<br>[0.0200]**|0.018<br>[0.0240]|(0.0035)**|
|Red tape,|Sales reported to taxes(b)|0.0006<br>[0.0014]|(0.0052)|-0.0001<br>[0.0007]|0.0011<br>[0.0008]|(0.0073)|
|corruption an<br>|d<br>Workforcereportedfortaxes (b)|-0.0015<br>[0.0012]|(0.0042)|0.0005<br>[0.0007]|-0.001<br>[0.0007]|(0.0049)|
|crime|Dummyforpayments to speed upbureaucracy|-0.0464<br>[0.0336]|(0.0526)|0.0079<br>[0.0186]|-0.0259<br>[0.0226]|(0.0463)|
||Dummyfor interventionistlabor regulation|-0.036<br>[0.0361]|(0.0211)*|-0.0407<br>[0.0226]*|-0.0334<br>[0.0272]|(0.0658)**|
||Absenteeism(b)|-0.0299<br>[0.0222]|(0.0571)|0.0003<br>[0.0112]|-0.0147<br>[0.0129]|(0.1783)**|
|Finance and|Dummyfortrade association|0.0785<br>[0.0455]*|(0.0456)*|0.0339<br>[0.0241]|0.0143<br>[0.0274]|(0.0762)|
|corporate|Working capital financed by domestic private banks (b)|0.0002<br>[0.0007]|(0.0005)|0.0004<br>[0.0004]|0.001<br>[0.0004]**|(0.0006)**|
|governance|Dummyforexternalaudit|0.0691<br>[0.0395]*|(0.0452)|0.0419<br>[0.0204]**|0.0827<br>[0.0245]***|<br>(0.0408)*|
||Dummy for loan (b)|0.1102<br>[0.0473]**|(0.0637)*|-0.0395<br>[0.0301]|0.1181<br>[0.0340]***|(0.0002)***|
|Quality,|Dummyfor R&D(a)|0.1787<br>[0.2382]|(0.2347)|0.0813<br>[0.0933]|0.2063<br>[0.1112]*|(0.0010)|
|innovation|Dummyforproductinnovation|-0.0073<br>[0.0360]|(0.0710)|-0.0508<br>[0.0200]**|-0.0081<br>[0.0233]|(0.0352)***|
|and labor<br>|Dummyfor foreign license(b)|0.204<br>[0.1053]*|(0.1302)|0.141<br>[0.0434]***|0.1478<br>[0.0499]***|<br>(0.0006)|
|skills|Dummyfor internaltraining (b)|0.0579<br>[0.0533]|(0.0516)|0.0794<br>[0.0290]***|0.0813<br>[0.0338]**|(0.0093)|
||Unskilled workforce(a)|0.0013<br>[0.0036]|(0.0016)|-0.0016<br>[0.0017]|-0.004<br>[0.0019]**|(0.1225)|
||Workforce with computer|0.0017<br>[0.0011]|(0.0015)|0.0006<br>[0.0005]|0.0015<br>[0.0006]***|(0.0498)***|
|Other control|<br>Dummyfor incorporated company|0.0265<br>[0.0396]|(0.0901)|0.0566<br>[0.0225]**|0.016<br>[0.0273]|(0.0398)**|
|variables|Age|0.0534<br>[0.0267]**|(0.0214)**|0.0363<br>[0.0146]**|0.0856<br>[0.0181]***|<br>(0.0431)**|
||Share ofexports (b)|0.001<br>[0.0009]|(0.0005)**|0.0001<br>[0.0004]|0.0003<br>[0.0004]|(0.0020)**|
||Trade union(b)|0.0008<br>[0.0012]|(0.0010)|-0.00004<br>[0.0005]|0.0002<br>[0.0005]|(0.0014)**|
||Strikes (b)|-0.0683<br>[0.0449]|(0.0821)|0.0482<br>[0.0301]|-0.0213<br>[0.0317]|(0.0043)|
||Constant|0.7377<br>[0.3449]**||1.1579<br>[0.1899]***|0.8508<br>[0.2174]***||
||Industry/region/size/time dummies|Yes||Yes|Yes||
||Observations|5211||4323 (Cens: 5515/ Unc:|5407 (Censored: 515|/ Uncens: 4982)|
||R-squared|0.88||<br>3808|||
||Heckman’s Lambda (Inverse of Mills ration)|||0.0130<br>[0.0634]|0.1221 [0.0926]|.|

Estimating results of equation (1) under different imputation mechanisms for missing data. Those observations with missing values in all sales, labor (labor cost), materials and capital are excluded in all the regressions.<sup>1</sup> See footnote in Table 8.1.<sup>2</sup> Heckman models are explained in section 5.4. Heckman model on complete case considers missingness only in PF variables, not in IC variables, see section 5.4.1. Heckman replacing inputs compute the model on the sample with replacement of missing values in inputs (labor, materials and capital), see section 5.4.2.

In all the cases significance is given by clustered by industry and region White- robust standard errors in brackets; *** 1%, **5%, * 10%. In the case of the ICA method and Heckmand replacing inputs, in parentheses are bootstrap standard errors after 1000 replications (see sections and 5.2.2 5.4.2). Correlation by cluster is also considered. Source: Authors’ calculations with ICSs.

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