Research Questions

This document outlines the key research questions for our analysis of job creation and firm performance indicators.

Research Questions

1. Job Creation Model

Question: What factors predict job creation?

Model Specification:

Job creation = B₀ + B₁(size_num) + B₂(credit_line) + B₃(certification) + ...

Answer:

Key factors that predict job creation include:

Company Size:
- On absolute terms: Large companies create the most jobs; regardless of country, larger companies naturally create more jobs.
- On size-adjusted terms: Medium companies create the most jobs relative to their size.
Access to Credit: Access to credit for firms is a significant indicator of ability to create jobs.
Certification: Firms having Certification of Quality standards are associated with job creation.
Interest Rates: Firms that indicated interest rates were unfavorable also saw a decrease in employment.

2. Firm Maturity and Job Creation

Question: How does the maturity of firms affect jobs, even if other indicators are positive?

Answer:

There is a negative correlation with the maturity of the firm. Newer firms created more jobs. Specifically, younger medium companies create more jobs than mature/old companies, even when controlling for other positive indicators.

3. Access to Credit and Job Creation

Question: How does access to credit impact companies’ abilities to create jobs?

Answer:

Access to credit for firms is a significant indication of ability to create jobs. Firms with better access to credit are more capable of expanding operations and creating employment opportunities.

4. Interest Rates and Job Creation

Question: What is the relationship between favorable interest rates (as indicated by firms) and job creation?

Answer:

Firms that indicated interest rates were unfavorable also saw a decrease in employment. This suggests that favorable interest rates (or at least the perception of favorable rates) are associated with job creation, while unfavorable rates are associated with employment declines.

5. Industry Employment Across Countries

Question: Is industry employment correlated (negatively) across countries?

Answer: To be completed

6. Regulatory Burden and Gender

Question: Does the same regulatory burden (time spent with officials) hurt female-led firms more than male-led firms?

Answer: To be completed

7. Management Quality vs. Access to Finance

Question: Is Management Quality (targets, monitoring) a stronger predictor of growth than Access to Finance?

Answer: To be completed

Data Dictionary

Key variables used in the analysis:

Identification and Basic Information

idstd: WEB STD FIRMID - Unique firm identifier used to link datasets
country: Economy
region: Region
sample: Dummy equal 1 for the latest survey in each economy

Company Size and Employment

size_num: Total Number Of Full Time Employees, Adjusted For Temp. and Part-time Workers
l1: Num. Permanent, Full-Time Employees At End Of Last Fiscal Year
l2: Num. Permanent, Full-Time Employees At End Of 3 Fiscal Years Ago
job_creation: Total Number Of Full Time Employees, Adjusted For Temp. and Part-time Workers

Firm Maturity/Age

b5: Year Establishment Began Operations
b6: Number Of Full-Time Employees Of The Establishment When It Started Operations
b6a: Was Establishment Formally Registered When It Began Operations?
b6b: In What Year Was This Establishment Formally Registered?

Access to Credit and Finance

k8: Establishment Has A Line Of Credit Or Loan From A Financial Institution?
k8_BR: Follow-up: Establishment Has A Line of Credit or Loan From A Financial Institution?
k7: At This Time, Does This Establishment Have An Overdraft Facility?
k6: Does This Establishment Have A Checking AndSaving Account?
k3b: Proportion Of Working Capital Financed From Private Commercial Banks
k3bc: % Of Working Capital Borrowed From Banks
k5b: Fixed Assets : Borrowed From Private Banks
k5bc: Last Fy, % Fixed Assets Funded By: Bank Borrowing
k16: In Last Fiscal Yr, Did Establishment Apply For New Loans/Lines Of Credit?
k18a: Apply For Any New Loans/Lines Of Credit That Were Rejected In Last Fiscal Year?
k30: How Much Of An Obstacle: Access To Finance

Certification and Quality Standards

b8: Does Establishment Have An Internationally-Recognized Quality Certification?
b8x: Specify The Internationally-Recognized Quality Certifications

Interest Rates and Financing Conditions

k30: How Much Of An Obstacle: Access To Finance
k17: Main Reason For Not Applying For New Loans Or New Lines Of Credit
k20: What Was The Reason Given For The Last Rejection?

Regulatory Burden

j2: What % Of Senior Management Time Was Spent In Dealing With Govt Regulations?
j3: Over The Last 12 Months, Was This Establishment Inspected By Tax Officials?
j4: Frequency Of Inspections/Requirement For Meeting By Tax Officials
j35a: Total annual time spent on tax compliance (hours)
j35b: Average monthly time spent on tax compliance (hours)
j30c: How Much Of An Obstacle: Business Licensing And Permits

Gender and Ownership

b4: Amongst The Owners Of The Firm, Are There Any Females?
b4a: % Of The Firm Owned By Females
b4a_cat: Female Ownership Categories
b7a: Is The Top Manager Female?
l5: Num. Full-Time Employees At End Of Last Fiscal Yr: Female

Management Quality

r2: Did This Establishment Monitor Any Production Performance Indicators?
r3: How Many Production/Service Provision Performance Indicators Were Monitored At This Establishment?
r4: Did This Establishment Have Production Provision Targets?
r5: What Best Describes The Time Frame Of Production/Service Provision Targets?
r6: How Easy To Achieve Its Production Targets?
r7: Who Was Aware Of The Production Targets At This Establishment?
r8: Was There Performance Bonuses Based On Production Targets?
r9: What Were Managers’ Performance Bonuses Mostly Based On?
b7: How Many Years Of Experience Working In This Sector Does The Top Manager Have?

Industry and Sector

isic_v4: ISIC code (Rev. 4.0), based on d1a2_v4
isic_v3_1: ISIC Code 3.1., Based On d1a2
sector_MS: Sector: Manufacturing Or Services, based on stra_sector
stra_sector: Cut: Stratification Sector

Additional Variables

d2: In Last Fiscal Year, What Were This Establishment’S Total Annual Sales?
d2a1: What were the establishment’s sales 2 years ago?
n3: What Were The Establishment Sales 3 Years Ago
b1: Legal Status Of The Firm
b2a: % Owned By Private Domestic Individuals, Companies Or Organizations
b2b: % Owned By Private Foreign Individuals, Companies Or Organizations

Notes

All analyses will be conducted using the joined dataset created from the ES-Indicators Database and New Comprehensive datasets
The datasets are linked via the idstd column
Results will be documented with statistical tests, visualizations, and interpretations
For a complete list of all variables, see the database schema or run explore_database.py

# Research Questions This document outlines the key research questions for our analysis of job creation and firm performance indicators. ## Research Questions ### 1. Job Creation Model **Question:** What factors predict job creation? **Model Specification:** ``` Job creation = B₀ + B₁(size_num) + B₂(credit_line) + B₃(certification) + ... ``` **Answer:** Key factors that predict job creation include: - **Company Size:** - **On absolute terms:** Large companies create the most jobs; regardless of country, larger companies naturally create more jobs. - **On size-adjusted terms:** Medium companies create the most jobs relative to their size. - **Access to Credit:** Access to credit for firms is a significant indicator of ability to create jobs. - **Certification:** Firms having Certification of Quality standards are associated with job creation. - **Interest Rates:** Firms that indicated interest rates were unfavorable also saw a decrease in employment. --- ### 2. Firm Maturity and Job Creation **Question:** How does the maturity of firms affect jobs, even if other indicators are positive? **Answer:** There is a negative correlation with the maturity of the firm. Newer firms created more jobs. Specifically, younger medium companies create more jobs than mature/old companies, even when controlling for other positive indicators. --- ### 3. Access to Credit and Job Creation **Question:** How does access to credit impact companies' abilities to create jobs? **Answer:** Access to credit for firms is a significant indication of ability to create jobs. Firms with better access to credit are more capable of expanding operations and creating employment opportunities. --- ### 4. Interest Rates and Job Creation **Question:** What is the relationship between favorable interest rates (as indicated by firms) and job creation? **Answer:** Firms that indicated interest rates were unfavorable also saw a decrease in employment. This suggests that favorable interest rates (or at least the perception of favorable rates) are associated with job creation, while unfavorable rates are associated with employment declines. --- ### 5. Industry Employment Across Countries **Question:** Is industry employment correlated (negatively) across countries? **Answer:** _To be completed_ --- ### 6. Regulatory Burden and Gender **Question:** Does the same regulatory burden (time spent with officials) hurt female-led firms more than male-led firms? **Answer:** _To be completed_ --- ### 7. Management Quality vs. Access to Finance **Question:** Is Management Quality (targets, monitoring) a stronger predictor of growth than Access to Finance? **Answer:** _To be completed_ --- ## Data Dictionary Key variables used in the analysis: ### Identification and Basic Information - **`idstd`**: WEB STD FIRMID - Unique firm identifier used to link datasets - **`country`**: Economy - **`region`**: Region - **`sample`**: Dummy equal 1 for the latest survey in each economy ### Company Size and Employment - **`size_num`**: Total Number Of Full Time Employees, Adjusted For Temp. and Part-time Workers - **`l1`**: Num. Permanent, Full-Time Employees At End Of Last Fiscal Year - **`l2`**: Num. Permanent, Full-Time Employees At End Of 3 Fiscal Years Ago - **`job_creation`**: Total Number Of Full Time Employees, Adjusted For Temp. and Part-time Workers ### Firm Maturity/Age - **`b5`**: Year Establishment Began Operations - **`b6`**: Number Of Full-Time Employees Of The Establishment When It Started Operations - **`b6a`**: Was Establishment Formally Registered When It Began Operations? - **`b6b`**: In What Year Was This Establishment Formally Registered? ### Access to Credit and Finance - **`k8`**: Establishment Has A Line Of Credit Or Loan From A Financial Institution? - **`k8_BR`**: Follow-up: Establishment Has A Line of Credit or Loan From A Financial Institution? - **`k7`**: At This Time, Does This Establishment Have An Overdraft Facility? - **`k6`**: Does This Establishment Have A Checking And\Or Saving Account? - **`k3b`**: Proportion Of Working Capital Financed From Private Commercial Banks - **`k3bc`**: % Of Working Capital Borrowed From Banks - **`k5b`**: Fixed Assets : Borrowed From Private Banks - **`k5bc`**: Last Fy, % Fixed Assets Funded By: Bank Borrowing - **`k16`**: In Last Fiscal Yr, Did Establishment Apply For New Loans/Lines Of Credit? - **`k18a`**: Apply For Any New Loans/Lines Of Credit That Were Rejected In Last Fiscal Year? - **`k30`**: How Much Of An Obstacle: Access To Finance ### Certification and Quality Standards - **`b8`**: Does Establishment Have An Internationally-Recognized Quality Certification? - **`b8x`**: Specify The Internationally-Recognized Quality Certifications ### Interest Rates and Financing Conditions - **`k30`**: How Much Of An Obstacle: Access To Finance - **`k17`**: Main Reason For Not Applying For New Loans Or New Lines Of Credit - **`k20`**: What Was The Reason Given For The Last Rejection? ### Regulatory Burden - **`j2`**: What % Of Senior Management Time Was Spent In Dealing With Govt Regulations? - **`j3`**: Over The Last 12 Months, Was This Establishment Inspected By Tax Officials? - **`j4`**: Frequency Of Inspections/Requirement For Meeting By Tax Officials - **`j35a`**: Total annual time spent on tax compliance (hours) - **`j35b`**: Average monthly time spent on tax compliance (hours) - **`j30c`**: How Much Of An Obstacle: Business Licensing And Permits ### Gender and Ownership - **`b4`**: Amongst The Owners Of The Firm, Are There Any Females? - **`b4a`**: % Of The Firm Owned By Females - **`b4a_cat`**: Female Ownership Categories - **`b7a`**: Is The Top Manager Female? - **`l5`**: Num. Full-Time Employees At End Of Last Fiscal Yr: Female ### Management Quality - **`r2`**: Did This Establishment Monitor Any Production Performance Indicators? - **`r3`**: How Many Production/Service Provision Performance Indicators Were Monitored At This Establishment? - **`r4`**: Did This Establishment Have Production Provision Targets? - **`r5`**: What Best Describes The Time Frame Of Production/Service Provision Targets? - **`r6`**: How Easy To Achieve Its Production Targets? - **`r7`**: Who Was Aware Of The Production Targets At This Establishment? - **`r8`**: Was There Performance Bonuses Based On Production Targets? - **`r9`**: What Were Managers' Performance Bonuses Mostly Based On? - **`b7`**: How Many Years Of Experience Working In This Sector Does The Top Manager Have? ### Industry and Sector - **`isic_v4`**: ISIC code (Rev. 4.0), based on d1a2_v4 - **`isic_v3_1`**: ISIC Code 3.1., Based On d1a2 - **`sector_MS`**: Sector: Manufacturing Or Services, based on stra_sector - **`stra_sector`**: Cut: Stratification Sector ### Additional Variables - **`d2`**: In Last Fiscal Year, What Were This Establishment'S Total Annual Sales? - **`d2a1`**: What were the establishment's sales 2 years ago? - **`n3`**: What Were The Establishment Sales 3 Years Ago - **`b1`**: Legal Status Of The Firm - **`b2a`**: % Owned By Private Domestic Individuals, Companies Or Organizations - **`b2b`**: % Owned By Private Foreign Individuals, Companies Or Organizations ## Notes - All analyses will be conducted using the joined dataset created from the ES-Indicators Database and New Comprehensive datasets - The datasets are linked via the `idstd` column - Results will be documented with statistical tests, visualizations, and interpretations - For a complete list of all variables, see the database schema or run `explore_database.py`