186
C H A P T ER 4
T H E L O NG S HA D O W O F I N F O R MA L I T Y
TABLE 4D.14 Regression: Developmental challenges and DGE-based output informality in EMDEs Lowest quartile (Q1)
2nd quartile (Q2) -Q1
3rd quartile (Q3) -Q1
Highest quartile (Q4) -Q1
Obs
R-sq
Dependent variable =
(1)
(2)
(3)
(4)
(5)
(6)
SDG global index rank
84.500*** 3.638
28.017*** 20.362**
117
0.088
(6.380)
(9.165)
(9.973)
(9.837)
Extreme poverty headcount (2000, percent of population)
13.140**
13.760
29.560**
40.310**
17
0.298
(5.439)
(17.815)
(13.628)
(18.508)
Extreme poverty headcount (latest, percent of population)
7.336***
1.418
23.579*** 12.435**
111
0.199
(1.908)
(3.204)
(5.318)
Agriculture sector (value added, percent of GDP)
4.846***
3.589**
14.358*** 15.348*** 157
0.298
(1.074)
(1.705)
(2.281)
Agriculture sector (employment, percent of employment)
10.366*** 10.350*** 32.082*** 34.126*** 157
Finance constraint (percent of firms)
24.295*** 5.775*
14.365*** 8.257*
(2.325)
(3.958)
Bank finance (percent of firms)
28.650*** -0.276 (2.406)
Internal finance (percent of investment)
68.843*** -1.446
6.834**
5.311*
(2.015)
(3.152)
(2.775)
(3.165)
Basic training
1.937***
0.128
-0.076
-0.028
(0.102)
(0.127)
(0.149)
(0.123)
2.941***
-0.001
-0.053
-0.081
(0.075)
(0.085)
(0.104)
(0.094)
3.675***
-0.201
-0.296**
-0.230
(0.088)
(0.129)
(0.121)
(0.157)
Business infrastructure Physical infrastructure
(2.372)
(3.907) (3.371) (3.482)
(4.433)
(4.925) (2.288) 0.360
(3.939) 109
0.108
-8.426**
-10.278*** 109
0.126
(3.324)
(3.367)
(4.201)
109
0.086
68
0.041
68
0.019
68
0.070
93
0.050
59
0.092
121
0.263 0.139
Adeq. of social insurance program (percent household income)
36.281*** -6.164
-10.095*
-6.798
(3.530)
(4.372)
(5.335)
(4.811)
Coverage of unemployment benefits (percent of population)
6.519***
0.326
-2.290
-3.653*
(1.823)
(2.399)
(2.069)
(2.025)
GDP per capita (logs)
8.769***
-0.697**
-1.645***
-1.317***
(0.220)
(0.293)
(0.296)
(0.274)
Access to credit (percent of GDP)
44.818*** -9.466
-23.791*** -18.603*** 122
(4.988)
(6.533)
(5.731)
(6.649)
Human capital (years of schooling)
7.253***
-0.524
-1.432*
-1.270**
(0.363)
(0.573)
(0.747)
(0.594)
Trade openness (percent of GDP)
83.269*** -8.021
-7.312
-9.606
(6.215)
(8.266)
(8.375)
Labor productivity (in thousands of 2010 U.S. dollars)
99
0.055
119
0.013
27.342*** -15.96***
-20.522*** -20.254*** 116
0.235
(5.092)
(5.338)
(5.270)
Per capita income of bottom 40 percent (2011 PPP$ per day)
6.344***
-1.911*
-2.426**
-2.044*
(0.790)
(1.054)
(1.206)
(1.107)
Per capita income growth of bottom 40 percent (2011 PPP$ per day)
3.215***
0.307
-1.581*
-2.270**
(0.702)
(1.178)
(0.841)
(1.071)
(8.878)
(5.328) 58
0.095
58
0.132
