Table 1

Variable description

VariablesDescriptionCodesSources
Trade (% of GDP)Represents the sum of exports and imports as a percentage of a country’s GDP, indicating the degree of openness and external integration of the economyTGDPGWorld Bank (WDI)
GDP (constant LCU) – LNThe total market value of all goods and services produced within a country, measured in constant local currency units (LCU), adjusted for inflation to show real growthDGPCGWorld Bank (WDI)
GDP growth (annual %)The annual percentage increase in a country’s GDP, reflecting the pace of economic expansion or contraction over timeGDPGWorld Bank (WDI)
GDP per capita (constant LCU) – LNThe average economic output per person, measured in constant local currency units, providing insight into the standard of living and economic prosperityGDPPGWorld Bank (WDI)
Inflation, consumer prices (annual %)The annual percentage change in the cost of a basket of goods and services typically consumed by households, indicating price stability or instabilityINFGWorld Bank (WDI)
Inflation, GDP deflator (annual %)Measures the change in prices for all goods and services in an economy, comparing the nominal GDP to real GDP and providing a broader inflation measure than consumer pricesINFDGWorld Bank (WDI)
Real effective exchange rate index (2010 = 100)An index measuring the value of a country’s currency relative to a weighted average of its trading partners’ currencies, adjusted for inflation differentials, indicating international competitivenessREEGWorld Bank (WDI)
Law and orderAn index assessing the strength of the legal framework and the level of adherence to the rule of law within a country, crucial for institutional stability and investor confidenceLOGWorld Bank (WDI)
Market capitalisation of listed domestic companies (% of GDP)The total value of a company’s shares of stock, reflecting the overall size of the stock market relative to the economy and investor sentiment toward public equitiesMCGWorld Bank (WDI)
Stocks traded, total value (% of GDP)The total number of shares traded during a given period, showing the liquidity and trading activity within the stock marketSTGWorld Bank (WDI)
Net foreign assets (current LCU) – LNThe value of foreign assets held by domestic banks minus foreign liabilities, providing insights into the banking sector’s exposure to global financial markets and external shocksNFAGWorld Bank (WDI)
Lending interest rate (%)The interest rate charged by banks on loans to the private sector, indicating the cost of borrowing and the credit conditions in the economyLIGWorld Bank (WDI)
Deposit interest rate (%)The interest rate paid by banks on deposits, reflecting the incentives for saving and the cost of holding funds in the banking systemDIGWorld Bank (WDI)
Broad money (% of GDP)The total amount of money in circulation, including cash, checking deposits and easily accessible financial instruments, used as an indicator of overall liquidity in the economyM3GWorld Bank (WDI)
Bank liquid reserves to bank assets ratio (%)The proportion of banks’ liquid assets (cash and readily convertible securities) relative to total assets, indicating the banking sector’s ability to meet short-term obligations and maintain financial stabilityBLRGWorld Bank (WDI)

Note(s): WDI represents world development indicators

Source(s): Authors’ compilation

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