||Table 11.4: TANZANIA, Extended produ<br>**Dependent variable: log of total sales**|ction function an<br>**ICA M**|d compariso<br>**thod**<sup>**1**</sup>|n of ICA method with Hec<br>**Heck**|kman models <br>**man models**<sup>**2**</sup>||
|---|---|---|---|---|---|---|
|||||**Heckman on complete case**|**Heckman replaci**|**ng 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|0.1655<br>[0.0853]*|(0.0512)***|0.1422<br>[0.0557]**|0.1742<br>[0.0669]***|(0.0677)**|
||Log-materials|0.4252<br>[0.0581]**|*<br>(0.0340)***|0.6176<br>[0.0274]***|0.6099<br>[0.0317]***|(0.0439)***|
||Log-capital|0.1589<br>[0.0323]**|*<br>(0.0208)***|0.1427<br>[0.0209]***|0.1417<br>[0.0265]***|(0.0235)***|
|Infrastructure|Electricityfromowngenerator(b)|0.0021<br>[0.0016]|(0.0053)|-0.001<br>[0.0018]|0.0041<br>[0.0020]**|(0.0017)**|
||Losses due towateroutages (b)|-0.0112<br>[0.0058]*|(0.0162)|-0.0081<br>[0.0060]|-0.0029<br>[0.0063]|(0.0054)|
||Water fromown wellor water infrastructure (a)|0.0001<br>[0.0051]|(0.0011)|0.001<br>[0.0031]|0.0044<br>[0.0036]|(0.0042)|
||Losses due to phone outages (a)|-0.0322<br>[0.0198]|(0.0071)***|-0.0315<br>[0.0284]|-0.0226<br>[0.0321]|(0.0291)|
||Transport outages (a)|-0.0047<br>[0.0703]|(0.1168)|-0.1172<br>[0.0503]**|-0.0214<br>[0.0583]|(0.0499)|
||Dummyforown roads (b)|0.289<br>[0.1488]*|(0.0581)***|0.3742<br>[0.1143]***|0.3416<br>[0.1444]**|(0.1321)***|
||Dummyfor webpage (b)|0.1578<br>[0.1212]|(0.1994)|0.3178<br>[0.0972]***|0.1595<br>[0.1208]|(0.1468)|
||Waitforawatersupply (a)|-0.1814<br>[0.0427]**|*<br>(0.0702)**|-0.1214<br>[0.0415]***|-0.1888<br>[0.0551]***|(0.0466)***|
||Low quality supplies (a)|-0.0163<br>[0.0128]|(0.0041)***|-0.0252<br>[0.0116]**|-0.0323<br>[0.0118]***|(0.0130)**|
|Red tape,|Gift to obtainanoperatinglicense (b)|-0.4983<br>[0.1935]**|<br>(0.1066)***|-0.1757<br>[0.1281]|0.0688<br>[0.1482]|(0.1589)|
|corruption and|Payments to deal withbureaucraticissues (b)|0.0939<br>[0.0299]**|*<br>(0.0164)***|0.0365<br>[0.0420]|0.0245<br>[0.0446]|(0.0495)|
|crime|Daysin inspections (b)|-0.1045<br>[0.0735]|(0.0494)**|-0.1106<br>[0.0525]**|-0.0246<br>[0.0585]|(0.0580)|
||Payments to obtaina contractwiththe government (b)|-0.0114<br>[0.0066]*|(0.0091)|-0.0332<br>[0.0088]***|-0.0101<br>[0.0074]|(0.0066)|
||Security expenses (b)|-0.0119<br>[0.0042]**|*<br>(0.0092)|0.0068<br>[0.0108]|-0.0051<br>[0.0058]|(0.0052)|
||Illegal payments in protection (b)|-0.0827<br>[0.0170]**|*<br>(0.1019)|-0.1209<br>[0.0478]**|-0.026<br>[0.0467]|(0.0493)|
|Finance and|Interestrate oftheloan(a)|-0.0109<br>[0.0145]|(0.0099)|0.0036<br>[0.0098]|-0.0074<br>[0.0115]|(0.0127)|
|corporate|Working capital financed by commercialbanks (b)|-0.0009<br>[0.0018]|(0.0012)|0.0000<br>[0.0014]|-0.003<br>[0.0016]*|(0.0015)**|
|governance|Working capital financed byleasing (b)|-0.0794<br>[0.0282]**|*<br>(0.0054)***|-0.0234<br>[0.0408]|-0.0473<br>[0.0096]***|(0.0806)|
||Sales bought oncredit (b)|-0.0014<br>[0.0012]|(0.0011)|-0.0029<br>[0.0012]**|0.0038<br>[0.0014]***|(0.0014)***|
||Delay in clearing a domestic currency wire (a)|-0.3418<br>[0.3273]|(0.0935)***|0.4842<br>[0.1853]***|0.1533<br>[0.1876]|(0.1996)|
|Quality,|Dummyfor newproduct (b)|0.0429<br>[0.1063]|(0.2036)|-0.1942<br>[0.0850]**|-0.003<br>[0.1014]|(0.0951)|
|innovation and|Staff -skilledworkers (b)|0.0026<br>[0.0023]|(0.0050)|0.0074<br>[0.0020]***|0.0092<br>[0.0026]***|(0.0024)***|
|labor skills|Workforce with computer (b)|0.0066<br>[0.0030]**|(0.0056)|0.0183<br>[0.0037]***|-0.0084<br>[0.0032]***|(0.0070)|
|Other control|Dummyfor incorporated company (b)|0.2914<br>[0.2023]|(0.5683)|-0.2149<br>[0.3207]|0.1701<br>[0.3050]|(0.1810)|
|variables|Dummy for FDI (b)|0.1397<br>[0.1445]|(0.2844)|0.1752<br>[0.1051]*|-0.0289<br>[0.1426]|(0.1326)|
||<br>Constant|<br>7.2978<br>[1.0168]**|<br>*|3.8725<br>[0.7997]***|<br>3.1102<br>[0.9936]***||
||Industry/region/size/time dummies|Ye|s|Yes|Yes||
||Observations|55|9|581 (Censored: 290/ Uncens:|771 (Censored: 317/|Uncens: 454)|
||R-squared|0.8|8|291)|||
||Heckman's Lambda|||-0.2747[0.1993]<br>|-0.2471[0.2303]||

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

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