From: Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
OLS | IV | |||||||
---|---|---|---|---|---|---|---|---|
Option 1 | Option 2 | Option 1 | Option 2 | |||||
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
A) Definition 1: share of small-size firms in industry | ||||||||
Log of average tariff | 0.016 [0.017] | 0.005 [0.015] | 0.020 [0.016] | 0.010 [0.015] | − 0.042 [0.023]* | − 0.058 [0.039] | − 0.016 [0.024] | − 0.027 [0.037] |
Observations | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 |
\(R^2\) | 0.94 | 0.94 | 0.94 | 0.94 | ||||
First stage result | ||||||||
Average z 2 | − 0.418 [0.098]*** | − 0.430 [0.120]*** | − 0.402 [0.096]*** | − 0.429 [0.119]*** | ||||
Observations | 32 | 32 | 32 | 32 | ||||
\(R^2\) | 0.74 | 0.76 | 0.72 | 0.74 | ||||
B) Definition 2: indicator of small-size industry | ||||||||
Log of average tariff | 0.011 [0.017] | 0.000 [0.015] | 0.019 [0.016] | 0.009 [0.016] | 0.038 [0.023] | 0.021 [0.038] | 0.000 [0.025] | − 0.009 [0.037] |
Observations | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 |
\(R^2\) | 0.94 | 0.94 | 0.94 | 0.94 | ||||
First stage result | ||||||||
Average \(z^2\) | − 0.422 [0.098]*** | − 0.423 [0.119]*** | − 0.407 [0.095]*** | − 0.431 [0.118]*** | ||||
Observations | 32 | 32 | 32 | 32 | ||||
\(R^2\) | 0.74 | 0.76 | 0.73 | 0.75 | ||||
Log relative supply | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Educational level of the labor force | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Fraction of small firms | No | Yes | No | Yes | No | Yes | No | Yes |