**Table 8: Robustness Checks, Regressions for Financial Constraints**

|||**D**|**ep. Var: Finan**|**ce is NO Obstac**|**le**||
|---|---|---|---|---|---|---|
||**Probit**|**OLS**|**Probit**|**OLS**|**Probit**|**OLS**|
|Observations|856|856|911|911|920|920|
|**Sector Dummies**|Yes|Yes|Yes|Yes|Yes|Yes|
|**Year Dummies**|Yes|Yes|Yes|Yes|Yes|Yes|
|**Firm Characteristics**|||||||
|Firm is medium-sized<br>|0.048<br>|0.043<br>|0.060<br>|0.054<br>|0.051<br>|0.045<br>|
|(dummy)|(0.043)|(0.040)|(0.041)|(0.040)|(0.041)|(0.038)|
|Firm is large|0.168*|0.154*|0.209**|0.187*|0.193**|0.173*|
|(dummy)|(0.093)|(0.089)|(0.096)|(0.092)|(0.091)|(0.087)|
|<br>Firm is Large*2005|-0.044|-0.047|-0.002|-0.0001|0.012|0.006|
|<br>(interaction term)|(0.087)|(0.092)|(0.090)|(0.091)|(0.090)|(0.089)|
|Firm is Large*2008/9|-0.121<br>|-0.136|-0.147*|-0.161<br>|-0.146*|-0.159*|
|(interaction term)|(0.076)|(0.090)|(0.077)|(0.095)|(0.074)|(0.092)|
|**Banking Sector**|||||||
|foreign bank assets 1999|-0.002*|-0.002*|-0.002*|-0.002*|-0.0017|-0.0018|
|(percent)|(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|
|<br>% Foreign in 1999*2005|0.0035**|0.0035**|0.0033**|0.0031**|0.0019|0.0019|
|(interaction term)|(0.001)|(0.001)|(0.001)|(0.001)|(0.0012)|(0.0011)|
|% Foreign in 1999*2008/9|0.0049***|0.0047***|0.0042***|0.0040***|0.0039***|0.0038***|
|(interaction term)|(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|
|**Credit Constraints**|||||||
|No need for external finance|0.239***|0.226***|0.246***|0.233***|0.259***|0.237***|
||(0.060)|(0.058)|(0.060)|(0.057)|(0.064)|(0.058)|
|**Competition**|||||||
|No competitors|0.017|0.012|||||
||(0.073)|(0.068)|||||
|More than 4 competitors|-0.059*|-0.055*|||||
||(0.033)|(0.031)|||||
|**Additional Controls**|||||||
|Audited financial statement|||-0.040|-0.035|||
||||(0.039)|(0.036)|||
|Female Owner|||0.010|0.005|||
||||(0.044)|(0.041)|||
|**Exchange Rate Regime**|||||||
|Current Account Deficit/GDP|||||0.010|0.008|
||||||(0.008)|(0.008)|
|Fixed Peg*current account|||||-0.004|-0.002|
|deficit*2002 dummy|||||(0.008)|(0.008)|
|Fixed Peg*current account<br>|||||0.020**|0.020**|
|deficit*2005 dummy|||||(0.008)|(0.008)|
|Fixed Peg*current account|||||-0.004|-0.003|
|<br>deficit*2009 dummy|||||(0.007)|(0.007)|
|Crawling*current account|||||0.013|0.014|
|deficit*2002 dummy|||||(0.011)|(0.011)|
|Crawling*current account<br>|||||0.011|0.011|
|deficit*2005 dummy|||||(0.011)|(0.010)|
|<br>Crawling*current account|||||<br>-0.004|<br>-0.003|
|<br>deficit*2009 dummy|||||(0.009)|(0.008)|
|<br>constant||0.516**||0.553***||<br>0.354**|
|||(0.154)||(0.154)||(0.169)|
|**Pseudo R-Squared/R-**|0.089|0.111|0.083|0.105|0.101|0.127|
|**Squared**|||||||

***,**, * Significant at 1,5, and 10 percent level.  T-statistics in parentheses. Source: Authors‘ calculations based upon data from the World Bank Enterprise Survey,  BEEPS data and from other sources Note:   Since dependent variables are dummy variables, probit regressions are used.  Performance variables used in analysis in Table 3 are omitted because they were not available for all years. Additional controls used in Table 4 for firm characteristics, country characteristics, firm performance, and year dummies are also included in these regressions, but are not presented in the table to conserve space.  All regressions

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