Sector Switching: An Unexplored Dimension of Firm Dynamics in Developing Countries



Table B Continued: Production Function Estimation - Specification Testing

Sector 27

βki = 0

ωt = 0

μ = 0

γ = 0

LL Restricted

-833

-821

-819

-847

LL unrestricted

-821

-817

-817

-821

Test Statistic

23.86

9.36

4.10

51.44

Result

Reject null (1%)

Reject null (5%)

Reject null (5%)

Reject null (1%)

Sector 28

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-4,839

-4,794

-4,797

-5,014

LL unrestricted

-4,794

-4,790

-4,790

-4,790

Test Statistic

90.55

7.40

14.00

450.22

Result___________

Reject null (1%)

Reject null (10%)

Reject null (1%)

Reject null (1%)

Sector 29

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-1,505

-1,499

-1,497

-1,618

LL unrestricted

-1,499

-1,496

-1,496

-1,496

Test Statistic

11.89

6.92

3.13

245.49

Result

Reject null (1%)

Reject null (10%)

Reject null (10%)

Reject null (1%)

Sector 31

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-915

-894

-895

-962

LL unrestricted

-894

-894

-894

-895

Test Statistic

40.78

1.59

1.18

134.48

Result___________

Reject null (1%)

Do not reject

Do not reject

Reject null (1%)

Sector 32

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-436

-424

-426

-473

LL unrestricted

-424

-421

-424

-424

Test Statistic

24.75

5.30

3.91

99.79

Result

Reject null (1%)

Do not reject

Reject null (5%)

Reject null (1%)

Sector 33

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-215

-215

-217

-241

LL unrestricted

-214

-213

-215

-215

Test Statistic

1.38

4.77

4.58

52.46

Result___________

Do not reject

Do not reject

Reject null (5%)

Reject null (1%)

Sector 34

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-780

-735

-736

-794

LL unrestricted

-735

-732

-735

-736

Test Statistic

90.32

4.36

2.57

116.53

Result

Reject null (1%)

Do not reject

Do not reject

Reject null (1%)

Sector 35

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-1,258

-1,251

-1,255

-1,343

LL unrestricted

-1,251

-1,242

-1,242

-1,242

Test Statistic

14.08

18.47

25.67

201.72

Result___________

Reject null (1%)

Reject null (1%)

Reject null (1%)

Reject null (1%)

Sector 36

βki = 0

ω = о

μ = 0

γ = 0

LL Restricted

-3,655

-3,639

-3,641

-3,796

LL unrestricted

-3,639

-3,629

-3,629

-3,629

Test Statistic

32.36

19.45

23.52

333.37

Result

Reject null (1%)

Reject null (1%)

Reject null (1%)

Reject null (1%)

Tests are re-run for the restrictions βkl = 0 and ωt = 0 imposing the restriction μ= 0 . The results are confirmed.

44



More intriguing information

1. Do the Largest Firms Grow the Fastest? The Case of U.S. Dairies
2. Pricing American-style Derivatives under the Heston Model Dynamics: A Fast Fourier Transformation in the Geske–Johnson Scheme
3. The name is absent
4. Job quality and labour market performance
5. Spatial patterns in intermunicipal Danish commuting
6. The name is absent
7. Human Rights Violations by the Executive: Complicity of the Judiciary in Cameroon?
8. The name is absent
9. The name is absent
10. Does Market Concentration Promote or Reduce New Product Introductions? Evidence from US Food Industry