||Table 11.2: TURKEY, Extended productio<br>**Dependent variable: log of total sales**|n function and c<br>**ICA Meth**|omparison<br>**od**<sup>**1**</sup><br>|of ICA method with He<br>**Heck**<br>**Heckman on complete case**|ckman models<br>**man models**<sup>**2**</sup><br> <br>**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<br>Log-materials<br>Log-capital|0.416<br>[0.0492]***<br>0.4184<br>[0.0404]***<br>0.0371<br>[0.0165]**|<br>(0.1088)***<br> <br>(0.0249)***<br>(0.0428)|0.4017<br>[0.0423]***<br>0.5306<br>[0.0189]***<br>0.063<br>[0.0164]***|0.5104<br>[0.0427]***<br>0.4585<br>[0.0187]***<br>0.067<br>[0.0182]***|(0.0376)***<br><br>(0.0310)***<br><br>(0.0168)***|
|Infrastructures|Days to clearcustomsfor imports (a)<br>Dummy for e-mail|-0.0707<br>[0.0686]<br>0.2866<br>[0.0920]***|(0.0688)<br>(0.1365)**|-0.155<br>[0.0835]*<br>0.0193<br>[0.0822]|-0.0648<br>[0.0859]<br>0.3121<br>[0.0786]***|(0.0556)***<br><br>(0.0659)**|
|Red tape,|Security expenses (b)|-0.0246<br>[0.0828]|(0.0011)***|-0.0379<br>[0.0824]|-0.0658<br>[0.0831]|(0.0575)**|
|corruption and|Payments to deal withbureaucraticissues (a)|-0.011<br>[0.0020]***|<br>(0.0077)|-0.0084<br>[0.0009]***|-0.0101<br>[0.0010]***|(0.0012)***|
|crime|Sales declared to taxes (a)|-0.0226<br>[0.0057]***|<br>(0.0045)***|-0.0175<br>[0.0075]**|-0.0131<br>[0.0077]*|(0.0055)***|
||Numberof inspections (b)|0.0046<br>[0.0044]|(0.0597)|-0.0017<br>[0.0043]|0.0049<br>[0.0045]|(0.0028)|
||Payments to obtaina contractwiththe government (b)|-0.0373<br>[0.0315]|(0.0058)***|-0.0371<br>[0.0323]|-0.0363<br>[0.0315]|(0.0256)**|
||Production lost due to absenteeism(b)|-0.0054<br>[0.0043]|(0.0367)|-0.0138<br>[0.0073]*|-0.0102<br>[0.0074]|(0.0042)**|
||Dummyfor informalcompetition(b)|0.0044<br>[0.0295]|(0.1203)|-0.011<br>[0.0283]|0.0046<br>[0.0306]|(0.0194)|
||Delay in obtaining a water supply (a)|-0.1325<br>[0.0634]**|(0.0993)|-0.0926<br>[0.0588]|-0.165<br>[0.0603]***|(0.0467)***|
|Finance|Dummyforcreditline<br>Dummyforexternalauditory (a)|0.068<br>[0.0868]<br>0.0863<br>[0.0753]|(0.1383)<br>(0.1117)|0.0473<br>[0.0621]<br>0.1407<br>[0.0617]**|0.0493<br>[0.0644]<br>0.1075<br>[0.0641]*|(0.0482)**<br>(0.0448)***|
||Loans in foreign currency (b)|0.0018<br>[0.0009]**|(0.0010)*|0.0003<br>[0.0009]|0.0016<br>[0.0009]*|(0.0008)*|
|Quality, innov.|Staff withuniversity education(b)|0.0095<br>[0.0026]***|<br>(0.0018)***|0.0083<br>[0.0023]***|0.0104<br>[0.0024]***|(0.0018)***|
|and labor skills|Staff-part time workers|-0.008<br>[0.0030]**|(0.0222)|-0.0065<br>[0.0027]**|-0.0093<br>[0.0028]***|(0.0019)***|
|Other control|Production lost due to strikes (b)|-0.1689<br>[0.0634]**|(0.0351)***|-0.1805<br>[0.0593]***|-0.153<br>[0.0723]**|<br>(0.0453)***|
|variables|Dummyfor recently privatizedfirm|1.0606<br>[0.2812]***|<br>(0.2511)***|1.3287<br>[0.3695]***|1.0391<br>[0.2582]***|(0.2653)***|
||Dummyfor competition against importedproducts|0.2069<br>[0.0962]**|(0.2737)|0.021<br>[0.0724]|0.2084<br>[0.0730]***|(0.0634)***|
||Constant|3.5299<br>[0.7190]***||3.0323<br>[0.6775]***|1.7704<br>[0.7084]**|(0.0376)***|
||Industry/region/size/time dummies|Yes||Yes|Yes||
||Observations|1684||1941 (Censored: 1149/|2509 (Censored: 11|49/ Uncensored:|
||R-squared|0.73||Uncensored: 792)|1360|)|
||Heckman's Lambda|||-0.1531<br>[0.1188]|0.0639<br>(0.1332]||

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

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