What Drives the Productive Efficiency of a Firm?: The Importance of Industry, Location, R&D, and Size



17


Table 7: Partial R2 (in percent): groups of the 10 percent least efficient, the 10 percent most efficient, and firms between 10 and 90
percent efficiency

Variable                                          1992-2005                                         1999-2005

(I)

(II)

(III)

(IV)

(V)

(VI)

df

10%

least
efficient

df

Between

10% least

and 10% most
efficient

df

■ 10%

most
efficient

df

10%

least
efficient

df

Between
10% least
and 10% most
efficient

df

10%

most
efficient

Environmental factors

Industry affiliation

231

12.67*

255

6.49*

223 16.42*

218

27.33*

254

7.55*

214

20.77*

Location (district)

428

15.68*

446

2.29*

429 11.56

385

24.72

443

2.99*

419

16.43

Year-effects

14

1.08

14

0.3

14

0.62

7

0.28

7

0.36

7

0.05

Firm-specific factors
a) Firm characteristics
Size category

5

0.35

5

5.26*

5

0.66*

5

0.08

5

4.88*

5

0.94*

Share in industry

1

0.06

1

0.0002

1

0.24*

1

0.09

1

0.002

1

0.35

Number of owners working in
the firm

1

0.01

1

0.56*

1

0.02

1

0.001

1

0.57*

1

0.06

R&D intensity

b) Outsourcing activities

1

0.04

1

0.09*

1

0.09

Quota of material inputs

1

2.35*

1

1.64*

1

0.05

1

0.62*

1

2.05*

1

0.02

Quota of external contract
work

1

0.09

1

0.09*

1

2.42*

1

0.0001

1

0.10*

1

1.54*

Quota of external services

1

1.98*

1

0.003

1

0.07

1

0.54

1

0.01

1

0.14

Quota of temporarily employed
labor

1

0.11

1

0.0001

1

0.01

Quota rents and leases
Sample selection control

1

0.001

1

0.001

1

0.03

Number of years

1

0.30*

1

0.03*

1

0.19*

1

1.91*

1

0.19*

1

0.41

Sum of partial R2s

3X56

16.66

3226

^5^572

188

^4085

Overall R2

31.09

16.98

29.95

44.55

19.37

37.02

Number of obs.

^3,865

30,911

3,865

1720

20,115

2,501


Notes of Table 5 apply.

The fourth and six models utilize the tenth and ninetieth percentiles cut-off values which are used for the first and third models, respectively.




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