The name is absent

Table A1. Comparison of coefficient of production function estimations LP vs. OLS.
Coefffrom LP regressions	Drugs & Pharma	Electronic & Electrical Goods	Garm. & Tex.
Lw	0.159***	0.104	0.042***
Lb	0.063*	0.074	0.036**
Lk	0.034	0.013	0.050
Lm	0.487**	0.968***	0.761***
Le	0.080**	0.047	0.108***
Coefffrom OLS regressions
Lw	0.163***	0.132***	0.051*
Lb	0.068***	0.038	0.036**
Lk	0.024	0.013	0.032**
Lm	0.671***	0.852***	0.761***
Le	0.092***	0.082**	0.109***

Change in lw coeff	-	-	-
Change in lb coeff	-	+	0
Change in lk coeff	+	0	+
Change in lm coeff	-	+	+
Change in le coeff	-	-	-
Observations	195	118 ~	372 '

Notes: * significant at 10%; ** significant at 5%; *** significant at 1%

Variables used in estimations

Production Function

Output	deflated sales from the balance sheet
Labour	“White” and “Blue”, for each category it represents the average hours worked in one year by each employees then multiplied by the number of employees belonging to each cathegory. In particular “white” collar workers (skilled) represents manager and professionals and “blue” collar workers identify the production and the non production, unskilled workers.
Capital	net book value from balance sheet
Material	deflated cost of material inputs excluding fuel, from balance sheet.
Energy	deflated cost for energy consumption (including electricity and fuel) from balance sheet.
Deflators	Wholesale Price Index (Source office of the Economic Adviser, Ministry of Commerce & Industry)

Tab.3

Capital Intensity	Net book value of capital /number of employees
Sh. of Sk. Workers	Number of white collar workers/blue collar workers
Age of mach	Average age of machineries
Employment	Number of employees
Average Wage	Total wage bill/ number of employees

38

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