Table 4

Model selection between difference-and-system-GMM

VARPOLSFETwo-step DGMM
FSL(−1)0.96*** (0.009)0.65*** (0.02)0.402*** (0.03)
GDP0.03 (0.04)0.003* (0.04)0.07*** (0.004)
GCF0.02 (0.04)0.01 (0.04)0.08*** (0.003)
HCE−0.006 (0.006)−0.004 (0.01)0.003*** (0.001)
PG0.0002 (0.01)0.06 (0.06)0.01*** (0.01)
SDG170.0002 (0.02)0.03 (0.06)−0.07*** (0.01)
UB0.012 (0.12)0.01 (0.25)−0.06*** (0.01)
GCF0.01 (0.02)0.03 (0.02)0.02*** (0.003)
FM3.56 (2.18)14.8 (7.25)**16.88*** (0.59)
C1.07 (1.05)9.9*** 3.94) 
Year dummiesYES
R-squared0.9330.944 
Number of countries484848
p-value: AR (1)  0.067
AR (2)  0.364
Sargan  0.567
Hansen  0.110

Note(s): Standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Field Data, 2025

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