Таҳририят: Бош муҳаррир – Т. Аҳмедов Масъул муҳаррир – А. Юлдашев

Data and Methodology. 
In our study, we use 
The World Bank Enterprise Survey that offers a wide 
range of information on private firm’s characteristics, 
labour composition, access to finance, sales, cost of 
production factors, bribery, infrastructure, trade, crime, 
competition, capacity utilization, innovation and 
technology, and performance indicators. For research 
paper, we carry out our research study based on a panel 
dataset that is made up of three waves—2008, 2013, 
and 2019—of the survey
2
.
Based on existing empirical studies [28–30], we 
use panel data for our study, the dataset enables us to 
describe the behaviour of individual firms observed 
across the time given. A major advantage of using panel 
data is that models using time-series and cross-sectional 
data without considering individual heterogeneity may 
end up with relatively biased results. To identify the 
factors determining the employment growth at firms, 
we employ a panel data analysis methodology.
y
it
=α
i
+X
it
^' β+u
it
, i ϵ (1,N); t ϵ (1,T);
Where 
x
it
is a vector of observed variables on the 
i
th
cross-sectional unit at timet, 
u
it
is the error term, 
β
is a vector of unknown parameters, α and is a scalar. 
Disaggregation of the error component is 
u
it
=μ
i
+v
it
, 
in which
 μ
i
indicates unobservable individual-specific 
effect and 
v
it
is the residual. In fixed-effects model, 
μ
i
is assumed to be fixed and 
v
it
is independent and 
identically distributed IID(0,σ
v
2
). In the random-effects 
model, however, 
μ
i
is assumed to be random. 
μ
i
 
~ 
I
ID(0,σ
μ
2
),
v
it
~ IID(0,σ
v
2
)
, and 
μ
i
are independent of 
v
it
.
We control for several variables in our model. Our 
dependent variable is the log of total annual sales 
that represents total annual sales recorded in the last 
financial year expressed in logarithmic form. The key 
independent variable is firms’ perception of corruption 
which shows whether firms in Uzbekistan consider 
corruption as a barrier to doing business. 
2 www.interprizesurvey.org

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108
Iqtisodiyot: 
tahlillar va prognozlar
Following this, we control for other relevant 
covariates based on other empirical studies. Export 
shows whether a firm exported its products in the last 
financial year; Female manager indicates the gender 
of a firm’s top manager; International certificate 
represents if a firm possesses an internationally-
recognized quality certification; Firm age represents 
years passed since the firm’s establishment in a survey 
year; Competition stands for whether the number of a 
firm’s competitors in the main market in which the firm 
sold its products in the last financial year exceeds 100; 
Finance the variable indicates whether a firm attracted a 
credit line or a loan; Formal training specifies if a firm 
had formal training programs for full-time employees in 
the last financial year; Furthermore, we control for the 
region and firm size. The latter has been classified in 
line with the number of employees: micro (x<10), small 
(10≤x<50), medium (50≤x<250), and large (x≥250).