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Table 2 Explanatory variables used in the output (Y) model

From: Dynamics of EU food safety certification: a survival analysis of firm decisions

Variable Proxy Definition Data source Hypothesis
Dependent variable
 Size of production Y Volume of production (in tons) Interviews  
Explanatory variables
 Profit margin pm Measured as average unit output price less average unit costs expressed as percentage of total value of production (%) DTI, DOLE, and NSO The higher the profit margin, the higher the incentive for firms to produce more.
 Corporation corp Dummy if the firm is a corporation (1 = corporation, 0 = not a corporation) Interviews Corporation has more equity and more capacity to pool the needed resources to produce more products. Thus, corporation, as compared to non-corporation, is more likely to have higher production levels.
 Product form shrimp, milkfish, tunacan, tunafroz; others These represent dummies for product form: tunafroz = frozen tuna; shrimp = shrimp; milkfish = milkfish; tunacan = canned tuna; others = other seafood products Interviews The product form, which may reflect consumer demand, can dictate the level of production. Tuna and shrimp are often the more internationally demanded commodities. Canned tuna processing firms often require a certain minimum size of production to recoup large start-up investments to be made.