Table 4: (continued)

|Variable<br>|Defnition<br>|Source<br>||Mean<br>|St.dev.<br>|Min<br>|Max<br>|
|---|---|---|---|---|---|---|---|
|LG area|average area of LG unit,<br>thds sq. km|various|sources|2.1|6.9|0|70.38|
||Other country|-specifc|control|s||||
|GDP per capita|PPP units, 2005|WDI<br>Bank)|(World|9548|14645|101|81777|
|log(GDP<br>per<br>|log.<br>of GDP per capita,<br>|WDI<br>|(World|7.67|1.62|4.5|10.7|
|capita)|PPP units, 2005|Bank)||||||
|openness|(exports + imports) as %<br>of GDP, constant prices,<br>2005|Penn<br>Tables|World|96.5|53.6|2|446|
|gov. consumption|GG consumptiona as % of<br>GDP, 2005|Penn<br>Tables|World|18.5|9.45|3.11|62.21|
|start business|# of procedures needed to<br>start business, 2005|WB<br>Business|Doing<br>|10.2|3.4|2|19|
|enforce contract|# of procedures needed to<br>enforce contract, 2005|WB<br>Business|Doing<br>|37.38|6.32|21|55|
|religious fractional-<br>ization|concentration (Herfndahl)<br>index for religious groups<br>in a country;<br>higher for<br>multi religious societies|Alesina<br>(2003)|et<br>al.|.43|.23|0|0.86|
|lingual<br>fractional-<br>ization|concentration (Herfndahl)<br>index for linguistic groups<br>in a country;<br>higher for<br>multi lingual societies|Alesina<br>(2003)|et<br>al.|.39|.28|0|.92|
|ethnical fractional-<br>ization|concentration (Herfndahl)<br>index for ethnical groups in<br>a country; higher for multi<br>ethnical societies|Alesina<br>(2003)|et<br>al.|.45|.25|0|.93|
|population|population of a country,<br>mln people, 2005|WDI<br>Bank)|(World|35.69|130.2|0.7|1303.7|
|UK legal origin|1 if country has British le-<br>gal origin|Treisma<br>(2000)|n|.3|.46|0|1|
|protestant|1 if protestants is a major<br>|Pippa<br>|Norris|.21|.4|0|1|
||religious group in a country|dataset||||||
|catholic|1 if catholics is a major re-|Pippa|Norris|.29|.46|0|1|
||ligious group in a country|dataset||||||
|muslim|1 if muslims is a major re-<br>ligious group in a country|Pippa<br>dataset|Norris|.28|.45|0|1|
|orthodox|1 if orthodox people is a<br>major religious group in a<br>|Pippa<br>dataset|Norris|.07|.25|0|1|
||country<br>Individual-s|pecifc c|ontrols|||||
|male|1 if male|-||.48|.5|0|1|
|age 30|age under 30|-||.31|.46|0|1|
|age 30-50|age between 30 and 50|-||.42|.45|0|1|
|age 50-65<br>|age between 50 and 65<br>|-||.18<br>|.39<br>|0<br>|1<br>|
|income low<br>income middle|low income (self-defniton)<br>middle<br>income<br>(self-<br>defniton)|-<br>-||.49<br>.37|.5<br>.48|0<br>0|1<br>1|
|education basic|basic or no education|-||.22|.41|0|1|
|education sec.|secondary education|-||.49|.5|0|1|
|unemployed|1 if unemployed|-||.11|.31|0|1|
|employed|1 if partially or fully em-<br>|-||.52|.5|0|1|
||ployed<br>Firm-spe|cifccont|rols|||||
|size small|1 if 5 to 20 employees|<br>-||.5|.5|0|1|
|size medium|1 if 20 to 100 employees|-||.32|.46|0|1|
|manufacturing|1 if frm is in manufactur-<br>ingsector|-||.58|.49|0|1|
|services|<br>1 if frm is in services sector|-||.3|.45|0|1|
|private domestic|<br>share in a frm of private<br>domestic owners|-||86.7|31.84|0|100|
|privateforeign|shareinafrmofprivate|-||1028|2845|0|100|
||<br>foreign owners|||.|.|||

<u>Note: Descriptions of variables, which are used in our</u> regressions. Abbreviations used: LG - local government, CG - central government, GG - general government.

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