Table 4 Credit, inflation, and...

Table 4

Credit, inflation, and investment: fixed-effects regressions

	World		Developed		Developing
	Inflation	GFCF gr	Inflation	GFCF gr	Inflation	GFCF gr
Credit impulse (ci)	−0.069	1.422^*	−0.013	1.590	−0.366^**	3.002^*
Credit impulse (ci)	(0.051)	(0.774)	(0.008)	(1.258)	(0.174)	(1.674)
Debt/GDP	0.009	0.202	0.006	−0.012	0.028	−0.593
Debt/GDP	(0.017)	(0.499)	(0.007)	(1.449)	(0.037)	(0.909)
Real GDP growth	−0.191	13.825^***	−0.075	6.903	−0.330^*	15.303^***
Real GDP growth	(0.134)	(4.446)	(0.078)	(5.183)	(0.165)	(5.310)
Current account/GDP	−0.086	0.789	−0.062^*	3.136	−0.135^**	0.146
Current account/GDP	(0.051)	(1.007)	(0.031)	(3.408)	(0.060)	(1.197)
Lending interest rate	0.526^***	−5.464^*	0.429^**	6.486	0.404^**	−4.630
Lending interest rate	(0.173)	(2.985)	(0.139)	(17.81)	(0.177)	(3.154)
Trade openness	0.055^*	0.149	0.032^***	−0.070	0.054	0.656
Trade openness	(0.032)	(0.445)	(0.008)	(0.725)	(0.038)	(0.670)
Institutional quality	−0.045	1.315	−0.080^*	−5.888	−0.043	2.058
Institutional quality	(0.042)	(1.579)	(0.036)	(6.669)	(0.053)	(2.092)
Country FE	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Observations	561	331	135	95	410	229

	World		Developed		Developing
	Inflation	GFCF gr	Inflation	GFCF gr	Inflation	GFCF gr
Credit impulse (ci)	−0.069	1.422^*	−0.013	1.590	−0.366^**	3.002^*
Credit impulse (ci)	(0.051)	(0.774)	(0.008)	(1.258)	(0.174)	(1.674)
Debt/GDP	0.009	0.202	0.006	−0.012	0.028	−0.593
Debt/GDP	(0.017)	(0.499)	(0.007)	(1.449)	(0.037)	(0.909)
Real GDP growth	−0.191	13.825^***	−0.075	6.903	−0.330^*	15.303^***
Real GDP growth	(0.134)	(4.446)	(0.078)	(5.183)	(0.165)	(5.310)
Current account/GDP	−0.086	0.789	−0.062^*	3.136	−0.135^**	0.146
Current account/GDP	(0.051)	(1.007)	(0.031)	(3.408)	(0.060)	(1.197)
Lending interest rate	0.526^***	−5.464^*	0.429^**	6.486	0.404^**	−4.630
Lending interest rate	(0.173)	(2.985)	(0.139)	(17.81)	(0.177)	(3.154)
Trade openness	0.055^*	0.149	0.032^***	−0.070	0.054	0.656
Trade openness	(0.032)	(0.445)	(0.008)	(0.725)	(0.038)	(0.670)
Institutional quality	−0.045	1.315	−0.080^*	−5.888	−0.043	2.058
Institutional quality	(0.042)	(1.579)	(0.036)	(6.669)	(0.053)	(2.092)
Country FE	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Observations	561	331	135	95	410	229

Note(s): All specifications estimated by within (fixed-effects) OLS with country and year fixed effects. Standard errors clustered by country are reported in parentheses. ^*p < 0.10, ^**p < 0.05, ^***p < 0.01

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