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Table 11 Robustness to industry size definition; industry tariffs and informality; OLS and IV estimation.

From: Trade liberalization and informality in Argentina: exploring the adjustment mechanisms

  A) Definition 1: share of small-size firms in industry B) Definition 2: indicator of small-size industry
OLS IV OLS IV
Option 1 Option 2 Option 1 Option 2 Option 1 Option 2 Option 1 Option 2
(1) (2) (3) (4) (1) (2) (3) (4)
Log of tariffs 0.045 [0.019]** 0.031 [0.016]*** 0.077 [0.063] 0.03 [0.102] 0.016 [0.015] 0.016 [0.015] − 0.025 [0.062] − 0.01 [0.103]
Log of tariffs*S − 0.119 [0.035]*** − 0.202 [0.049]*** − 0.177 [0.050]*** − 0.259 [0.072]*** − 0.02 [0.018] − 0.107 [0.025]*** − 0.087 [0.034]** − 0.114 [0.033]***
Observations 26795 26795 26795 26795 26795 26795 26795 26795
\(R^2\) 0.18 0.18    0.18 0.18   
First stage result
 Log of tariffs
  \(z^1\)    − 0.223 [0.078]*** − 0.126 [0.080]    − 0.172 [0.069]** − 0.059 [0.074]
  \(z^1\)*S    0.075 [0.019]*** 0.059 [0.022]***    0.046 [0.011]*** 0.015 [0.009]*
  \(z^2\)    − 0.269 [0.106]** − 0.144 [0.104]    − 0.329 [0.113]*** − 0.197 [0.121]
  \(z^2\)*S    0.448 [0.177]** 0.100 [0.340]    0.292 [0.081]*** − 0.284 [0.154]*
  \(R^2\)    0.75 0.74    0.76 0.74
 Log of tariffs*S
  \(z^1\)    − 0.088 [0.030]*** − 0.024 [0.135]*    − 0.060 [0.037] − 0.012 [0.015]
  \(z^1\)*S    − 0.064 [0.009]*** − 0.079 [0.009]***    − 0.082 [0.006]*** − 0.087 [0.008]***
  \(z^2\)    0.021 [0.037] 0.007 [0.021]    0.006 [0.078] − 0.054 [0.027]**
  \(z^2\)*S    − 0.039 [0.072] − 0.237 [0.082]***    0.017 [0.056] − 0.340 [0.110]***
  \(R^2\)    0.99 0.99    0.99 0.99
Kleibergen-Papp Wald F    5.33 1.24    6.29 1.4
Anderson-Rubin Wald F test (p-value)    0.0010 0.0012    0.0192 0.0029
  1. Robust standard errors clustered by industry-year in brackets. Industry size S defined based on the share of small firms in each industry in 1980 (panel A) and as a dummy indicating small industries in 1980 (panel B). The Stock-Yogo critical values for a 5% and 10% maximal IV relative bias are 11.04 and 7.56 respectively
  2. ***Significant at 1%
  3. **Significant at 5%
  4. *Significant at 10%