Table 4

Mechanism tests

Size of the public sector workforceNon-productive expenses of enterprisesAlleviation of corporate financing constraintsEconomic policy uncertainty
IIIIIIIVVVIVIIVIII
GD −0.082*** −0.073*** −0.076** −0.051***
 (−3.39) (−2.87) (−2.35) (−3.20)
GCF−0.659***−0.645***−0.269−0.265−0.239−0.312*−0.549***−0.558***
(−7.22)(−6.92)(−1.14)(−1.62)(−0.98)(−1.85)(−5.18)(−5.42)
FDI0.0420.037−0.460−0.611**−0.532−0.676**−0.0120.014
(0.63)(0.55)(−1.12)(−2.17)(−1.25)(−2.31)(−0.13)(0.15)
CPI0.253***0.242**0.895***1.148***0.675***1.068***0.293***0.332***
(2.73)(2.57)(3.73)(6.78)(3.27)(6.98)(2.71)(2.94)
GDP−0.816***−0.870***−1.928***−0.690**−1.956***−0.642**−1.146***−0.936***
(−5.77)(−5.49)(−5.53)(−2.25)(−5.42)(−2.04)(−7.33)(−4.93)
EGS−0.083−0.1020.1240.425**0.2260.498−0.273**−0.206*
(−1.08)(−1.26)(0.51)(2.44)(0.87)(0.62)(−2.39)(−1.84)
SPSW−0.040**0.026      
(−1.98)(0.30)      
GD × SPSW 0.012**      
 (2.08)      
NPEE  0.007***−0.008    
  (2.75)(−0.72)    
GD × NPEE   −0.021**    
   (−2.00)    
ACFC    −0.013**0.016  
    (−2.38)(0.84)  
GD × ACFC     −0.022***  
     (−2.77)  
EPU      0.029***−0.030
      (3.34)(−0.64)
GD × EPU       −0.048***
       (−3.90)
Constant1.224***1.601***1.441***1.943***1.133***1.279**1.672***1.689***
(11.02)(8.54)(6.42)(3.65)(6.91)(2.49)(9.87)(5.29)
R-squared0.7910.9620.6330.8380.6060.8330.5370.731
Observations384384112112112112185185
country FEYESYESYESYESYESYESYESYES
year FEYESYESYESYESYESYESYESYES

Note(s): t-statistics are in parenthesis; ***, **, and * denote statistical significance at the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work
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