Pearson’s correlation and Variance Inflation Factor
| Variables | NATO | SIZE | BSIZE | INF | GDP | Variance inflation factor (VIF) |
|---|---|---|---|---|---|---|
| NATO | 1.0000 | 1.37 | ||||
| SIZE | −0.2685*** | 1.0000 | 1.47 | |||
| BSIZE | −0.1275*** | 0.4509*** | 1.0000 | 1.26 | ||
| INF | 0.1017*** | 0.0106 | 0.0332 | 1.0000 | 1.03 | |
| GDP | 0.4969*** | −0.4286*** | −0.2327*** | −0.0749*** | 1.0000 | 1.55 |
| Variables | NATO | SIZE | BSIZE | INF | GDP | Variance inflation factor (VIF) |
|---|---|---|---|---|---|---|
| NATO | 1.0000 | 1.37 | ||||
| SIZE | −0.2685*** | 1.0000 | 1.47 | |||
| BSIZE | −0.1275*** | 0.4509*** | 1.0000 | 1.26 | ||
| INF | 0.1017*** | 0.0106 | 0.0332 | 1.0000 | 1.03 | |
| GDP | 0.4969*** | −0.4286*** | −0.2327*** | −0.0749*** | 1.0000 | 1.55 |
Note(s): NATO = A dummy variable that takes one for NATO member countries and 0 otherwise. SIZE = Logarithm of market capitalization. BSIZE = Number of Director. INF = Inflation rate. GDP = GDP per capita. ***, **, and * are significant at 1%, 5%, and 10% confidence levels, respectively
Source(s): Elaborated by the authors