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Djankov, Simeon, Rafael La Porta, Florencio López-de-Silanes, and Andrei Shleifer. 2002. The Regulation of Entry. Quarterly Journal of Economics, 117(1): 1-37.
- Employment Size [EMPin] Log employment in industry i and country n in the starting year (1980 or 1990).
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Fisman, Raymond and Inessa Love. 2007. Financial Dependence and Growth Revised. Journal of the European Economic Association Papers and Proceedings, 5(2-3): 470-479.
Fisman, Raymond and Virginia Sarria-Allende. 2004. Regulation of Entry and the Distortion of Industrial Organization. National Bureau of Economic Research, Working Paper No. 10929.
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- Panel B: Industry Level US Employment Reallocation [US-EMPGRi] Annual change of log employment in industry i in the US over the period 1980-1989 or the period 1990-1999. Due to data unavailability in 1990-1999 we lose two industries, namely “Printing and Publishing†and “Miscellaneous Petroleum and Coal Products.†Source: United Nations Industrial Development Organization (UNIDO) Statistics, 2005. Global Frictionless Employment Growth [G-EMPGR i] Global industry employment growth at the absence of entry delays. These estimates are obtained in two steps: Step 1: Regress industry-country employment growth for all countries except the U.S. on country dummies, industry dummies, and industry dummies interacted with countrylevel entry regulation (and, if relevant, additional controls). Step 2: Obtain G-EMPGR i as predicted industry employment growth at the lowest level of entry delays. See Section 3 for details.
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- Panel C: Country Level Entry Delays [EDn] Log number of days required to obtain legal status to operate a firm in 1999. In the regression analysis the index is rescaled so that zero indicates the minimum in-sample value.
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Parente, Stephen L. and Edward C. Prescott. 1994. Barriers to Technology Adoption and Development. Journal of Political Economy, 102(2): 298-321.
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Rajan, Raghuram G. and Luigi Zingales. 1998. Financial Dependence and Growth. American Economic Review, 88(3): 559-586.
- Sales Growth [SALESGRi] Annual change of log shipment growth in industry i in the US over the period 1980-1989 or the period 1990-1996. This is Fisman and Love’s (2007) measure of industry growth opportunities.
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Schiantarelli, Fabio. 2005. Product Market Regulation and Macroeconomic Performance: A Review of Cross-Country Evidence. Boston College, Economics Department, Working Paper, No. 623.
- Source: Botero, Djankov, La Porta, Lopez-de-Silanes, and Shleifer (2004). Financial Underdevelopment [FIN-UNDn] Log of average domestic credit to the private sector relative to GDP in the respective decade (denoted as FD in the Supplementary Appendix Tables). In the regression analysis the index is rescaled so that zero indicates the largest in-sample value, and higher values lower financial development (so that, as in the case of ED and LMR, higher values corresponds to greater frictions).
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- Source: Djankov, La Porta, Lopez-de-Silanes, and Shleifer (2002). Labor Market Regulation [LMRn] Labor market regulation index based on the existence of alternative employment contracts, the cost of increasing hours, the cost of firing, and the formality of dismissal procedures. The variable ranges from zero to a hundred where higher values indicate a greater labor market regulation. In the regression analysis the index is rescaled so that zero indicates the minimum in-sample value.
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- Source: NBER Manufacturing Database (Bartelsman and Gray, 1996).
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- Source: United Nations Industrial Development Organization (UNIDO) Statistics, 2005 External-Finance Dependence [EXTFINi] Median ratio of capital expenditure minus cash flow to capital expenditure for U.S. firms averaged over the 1980s.
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- Source: United Nations Industrial Development Organization (UNIDO) Statistics, 2005.
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- Source: United Nations Industrial Development Organization (UNIDO) Statistics, 2005.
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- Source: World Bank World Development Indicators Database (2005). Economic Underdevelopment [EC-UNDn] Log of real per capita GDP in the beginning of each decade (denoted as Y in the Supplementary Appendix Tables). In the regression analysis the index is standardized so that zero indicates the maximum in sample value and higher values denote lower income levels. Source: Penn World Tables 5.6. The Data Appendix Table reports variable definitions and sources for all variables employed in the empirical analysis. The first column reports the variable name and the abbreviation; the second column reports definition and sources. Industry Shock Employment Growth Economy with less restricted entry Economy with more restricted entry C zone B zone A zone
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Stigler, George J. 1971. The Theory of Economic Regulation. Bell Journal of Economics, 2(1): 3-21.
- United Nations Industrial Development Organization. 2005. Industrial Statistics. New York, NY.
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