||Table 11.3: SOUTH AFRICA, Extended produ<br>**Dependent variable: log of total sales**|ction function and<br>**ICA Met**|comparison<br>**od**<sup>**1**</sup>|of ICA method with He<br>**Heck**<br>|ckman models<br>**man models**<sup>**2**</sup><br>||
|---|---|---|---|---|---|---|
|||||**Heckman on complete case**|**Heckman repla**|**cing inputs**|
|**Category**|**Variable**|**Coeff.**<br>**std. err.**|**Boot. st. er.**|**Coeff.**<br>**Std.Err**|**Coeff.**<br>**std. err.**|**Boot. st. er.**|
|PF variables|Log-employment|0.3226<br>[0.0711]***|<br>(0.0365]***|0.3427<br>[0.0261]***|0.3275<br>[0.0250]**|*<br>(0.0452)***|
||Log-materials|0.5195<br>[0.1017]***|<br>(0.0214]***|0.4871<br>[0.0121]***|0.5184<br>[0.0120]**|*<br>(0.0567)***|
||Log-capital|0.1247<br>[0.0300]***|(0.0118]***|0.1117<br>[0.0123]***|0.1241<br>[0.0129]**|*<br>(0.0168)***|
|Infrastructure|Days to clearcustomsfor import s(a)|-0.1188<br>[0.1125]|(0.1233]|0.032<br>[0.1133]|-0.1728<br>[0.1286]|(0.1542)|
||Saleslost due to poweroutages (b)|-0.0171<br>[0.0114]|(0.0047]***|-0.0059<br>[0.0062]|-0.0166<br>[0.0069]**|<br>(0.0064)***|
||Wateroutages (b)|-0.1477<br>[0.0527]***|<br>(0.0942]|-0.1215<br>[0.0501]**|-0.1383<br>[0.0516]**|*<br>(0.0460)***|
||Average durationoftransportfailures (a)|-0.0439<br>[0.0806]|(0.0379]|0.1092<br>[0.0936]|-0.0821<br>[0.0985]|(0.1197)|
||Waitforelectric supply (a)|-0.0867<br>[0.0553]|(0.0173]***|-0.0311<br>[0.0544]|-0.057<br>[0.0717]|(0.0742)|
||Sales lost due to delivery delays (b)|-0.0099<br>[0.0083]|(0.0073]|-0.0069<br>[0.0054]|-0.0109<br>[0.0054]**|(0.0051)**|
|Red tape,|Manager's time spent onbur. issues (b)|0.007<br>[0.0051]|(0.0016]***|0.0065<br>[0.0016]***|0.0079<br>[0.0017]**|*<br>(0.0035)**|
|<br>corruption and|Payments to deal withbureaucraticissues (b)|-0.0045<br>[0.0024]*|(0.3604]|-0.0028<br>[0.0101]|-0.0056<br>[0.0039]|(0.0073)|
|crime|Sales declared to taxes (a)|0.0056<br>[0.0046]|(0.0022]**|0.0079<br>[0.0041]*|0.0062<br>[0.0056]|(0.0049)|
||Payments to obtaina contractwiththe government (b)|-0.0144<br>[0.0185]|(0.1975]|-0.0099<br>[0.0198]|-0.0134<br>[0.0228]|(0.0463)|
||Security expenses (a)|0.1407<br>[0.0511]**|(0.0069]***|0.0308<br>[0.0152]**|0.1324<br>[0.0578]**|<br>(0.0658)**|
||Illegalpaymentsinprotection(b)|0.3969<br>[0.2428]|(0.1128]***|0.2767<br>[0.1745]|0.3686<br>[0.0888]**|*<br>(0.1783)**|
||Crime losses (a)|-0.0502<br>[0.0788]|(0.1374]|0.1006<br>[0.0792]|-0.0561<br>[0.0817]|(0.0762)|
|Finance and|Percentage ofcredit unused (b)|0.0014<br>[0.0010]|(0.0013]|0.0006<br>[0.0005]|0.0013<br>[0.0006]**|<br>(0.0006)**|
|corporate|Dummyfor loan|0.0715<br>[0.0492]|(0.0327]**|0.0634<br>[0.0400]|0.0705<br>[0.0413]*|(0.0408)*|
|governance|Value ofthe collateral(b)|-0.0008<br>[0.0002]***|<br>(0.0009]|-0.0009<br>[0.0002]***|-0.0008<br>[0.0002]**|*<br>(0.0002)***|
||Loansin foreigncurrency (b)|0.0018<br>[0.0022]|(0.0024]|0.0013<br>[0.0012]|0.0015<br>[0.0012]|(0.0010)|
||Charge to cleara check(a)|-0.1164<br>[0.0503]**|(0.0253]***|-0.1773<br>[0.0324]***|-0.1239<br>[0.0340]**|*<br>(0.0352)***|
||Largest shareholder|0.0006<br>[0.0010]|(0.0008]|0.0000<br>[0.0006]|0.0008<br>[0.0007]|(0.0006)|
||Working capital financed byforeigncommercialbanks (b)|0.0106<br>[0.0083]|(0.0084]|0.0241<br>[0.0070]***|0.0134<br>[0.0045]**|*<br>(0.0093)|
||Working capital financed by informal sources (b)|-0.0022<br>[0.0023]|(0.0001]***|-0.0044<br>[0.0031]|-0.002<br>[0.0036]|(0.1225)|
|Quality, innovation|<br> <br>Dummyfor ISO quality certification(b)|<br>0.1603<br>[0.0766]**|(0.0365]***|<br>0.1208<br>[0.0359]***|<br>0.1599<br>[0.0389]**|<br>*<br>(0.0498)***|
|<br>and labor skills|<br><br>Dummyfor newproduct (b)|0.091<br>[0.0494]*|(0.0113]***|0.0322<br>[0.0377]|0.0807<br>[0.0398]**|<br>(0.0398)**|
||Dummyfordiscontinued productline (b)|-0.1007<br>[0.0610]|(0.0384]**|-0.0565<br>[0.0333]*|-0.0865<br>[0.0375]**|<br>(0.0431)**|
||Staff - management|0.004<br>[0.0028]|(0.0009]***|0.0047<br>[0.0016]***|0.0041<br>[0.0015]**|*<br>(0.0020)**|
||Staff - non-production workers|-0.0034<br>[0.0022]|(0.0025]|-0.0027<br>[0.0011]**|-0.0033<br>[0.0012]**|*<br>(0.0014)**|
||Trainingforunskilledworkers (a)|0.001<br>[0.0026]|(0.0030]|-0.0048<br>[0.0032]|0.0012<br>[0.0041]|(0.0043)|
||University staff(b)|0.0049<br>[0.0015]***|<br>(0.0007]***|0.0036<br>[0.0015]**|0.0044<br>[0.0014]**|*<br>(0.0012)***|
||Manager's experience (b)|0.0391<br>[0.0249]|(0.0217]*|0.0336<br>[0.0142]**|0.0369<br>[0.0150]**|(0.0173)**|
|Other control|Age(b)|0.0018<br>[0.0015]|(0.0016]|0.0016<br>[0.0009]*|0.0012<br>[0.0010]|(0.0011)|
|variables|Share of the local market(b)|0.0032<br>[0.0008]***|<br>(0.0004]***|0.0028<br>[0.0006]***|0.0031<br>[0.0006]**|*<br>(0.0007)***|
||Constant|2.7174<br>[0.8932]***||2.7155<br>[0.5500]***|2.7170<br>[0.6986]**|*|
||Industry/region/size/time dummies|Yes||Yes|Yes||
||Observations|1483||1443 (Censored: 2007/|1657(Censored: 183|/ Uncens.: 1484)|
||R-squared|0.89||Uncens: 1236)|||
||Heckman's Lambda|||-0.2747<br>[0.1993]|-0.2471<br>[0.2303]||

Notes for Table 11.1. Source: Authors’ calculations with ICSs.

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