**Table 5: EPAs: what works, what doesn’t?**<sup>_a_</sup>

||OLS|2SLS<br>2|SLS + Heckman|
|---|---|---|---|
|Log of Budget per capita|0.064|0.089<sup>_⋆⋆_</sup>|0.072<sup>_⋆⋆_</sup>|
|(ln _Bud/pop_)<sup>_b_</sup><br>Log of GDP per capita<br>(ln _GDP/pop_)<br>Log of Trade restrictiveness<br>(ln _T_)<br>Log of Trade restrictiveness in ROW|( 0.064 )<br>0.669<sup>_⋆⋆_</sup><br>( 0.206 )<br>-0.132<br>( 0.215 )<br>-1.366<sup>_⋆⋆_</sup>|( 0.026 )<br>0.477<sup>_⋆⋆_</sup><br>( 0.189 )<br>-0.176<br>( 0.196 )<br>1.504<sup>_⋆⋆_</sup>|( 0.022 )<br>0.577<sup>_⋆⋆_</sup><br>( 0.164 )<br>-0.212<br>( 0.167 )<br>-1.605<sup>_⋆⋆_</sup>|
|(ln _MA_)<br>Log of Forex volatility<br>|( 0.587 )<br>-0.350<sup>_⋆⋆_</sup><br>|( 0.460 )<br>-0.384<sup>_⋆⋆_</sup><br>|( 0.432 )<br>-0.366<sup>_⋆⋆_</sup><br>|
|(ln _V ol_)<br>Days to comply with export<br>|( 0.164 )<br>-0.024<sup>_⋆_</sup><br>|( 0.153 )<br>-0.032<sup>_⋆⋆_</sup><br>|( 0.130 )<br>-0.030<sup>_⋆⋆_</sup><br>|
|regulation (ln _Reg_)<br>Log of geo-trade/GDP ratio<br>(ln F&R)|( 0.016 )<br>0.398<sup>_⋆⋆_</sup><br>( 0.145 )|( 0.010 )<br>0.336<sup>_⋆⋆_</sup><br>( 0.106 )|( 0.008 )<br>0.305<sup>_⋆⋆_</sup><br>( 0.094 )|
|Executive Board seats|0.535<sup>_⋆_</sup>|0.631<sup>_⋆⋆_</sup>|0.545<sup>_⋆⋆_</sup>|
|to private sector<br>Degree of decentralization of<br>|( 0.288 )<br>-0.169<br>|( 0.235 )<br>-0.217<sup>_⋆_</sup><br>|( 0.199 )<br>-0.262<sup>_⋆⋆_</sup><br>|
|agencies devoted to exp. prom.<br>Share of agency budget spent|( 0.122 )<br>0.029<br>|( 0.119 )<br>0.092<br>|( 0.093 )<br>0.081<br>|
|on non-export promotion activities<br>|( 0.073 )<br>|( 0.060 )<br>|( 0.049 )<br>|
|Strategy focuses on non|0.038<br>|0.062<br>|0.028<br>|
|traditional exports or sector specifc<br>Share of EPA funding coming from<br>public sources<br>Share of country image activities|( 0.095 )<br>0.087<br>( 0.054 )<br>-0.055|( 0.072 )<br>0.102<sup>_⋆⋆_</sup><br>( 0.046 )<br>-0.069|( 0.066 )<br>0.055<br>( 0.042 )<br>-0.062|
|in EPA’s expenditure|( 0.088 )|( 0.076 )|( 0.070 )|
|Share of marketing activities|-0.020<br>|0.014<br>|0.013<br>|
|in EPA’s expenditure|( 0.070 )|( 0.068 )|( 0.054 )|
|Share of research activities|0.013|0.009|-0.035|
|in EPA’s expenditure|( 0.116 )|( 0.102 )|( 0.076 )|
|Share of export support serv.|0.029|0.008|0.016|
|in EPA’s expenditure|( 0.074 )|( 0.063 )|( 0.055 )|
|Share of large clients|0.001|-0.001|-0.017|
|in EPA expenditure|( 0.084 )|( 0.084 )|( 0.071 )|
|Share of established exporters<br>|-0.010<br>|-0.059<br>|-0.065<br>|
|in EPA expenditure<br>EPA has representation|( 0.049 )<br>0.012|( 0.045 )<br>0.233|( 0.040 )<br>0.213|
|ofces abroad<br>Constant|( 0.186 )<br>-3.091<br>( 1.841 )|( 0.177 )<br>-1.607<br>( 1.711 )|( 0.163 )<br>-2.224<br>( 1.414 )|
|_P_-value of Chi-squared Wald-test<br>Number of observations<br>_λ_<sup>_c_</sup>|0.000<br>52<br>NA|0.000<br>52<br>NA|0.000<br>52<br>0.706<sup>_⋆⋆_</sup><br>( 0.284 )|

> _a_ The first column reports OLS results; the second column 2SlS and the third column reports 2SLS that also correct for sample selection. Regional dummies included in all regressions.

_b_ White robust standard errors are reported in parenthesis; _⋆⋆_ stands for significance at the 5 percent level; and _⋆_ stands for significance at the 10 percent level.

> _c_ The selection parameter _λ_ (Mills ratio) captures the extent to which selection is a problem in the sample. When statistically different from zero, this suggest that there is a sample bias that needed to be corrected.

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