Table 2 Descriptive statistics, VIF and...

Table 2

Descriptive statistics, VIF and Pesaran CSD results

	Descriptive statistics					Multicollinearity	Cross-sectional dependence test
Variable	Obs	Mean	Std. dev	Min	Max	VIF	Pesaran CSD t	CSD p-value
Inclusive growth	766	−0.329	0.396	−3.090	1.200		0.62	0.536
Structural transformation	798	41.049	13.919	1.700	72.400	2.96	−0.17	0.865
Agriculture VA	800	19.739	11.426	1.580	55.014	11.60	−1.16	0.310
Employment in agriculture	800	50.310	20.316	5.318	91.930	6.16	1.58	0.114
Manufacturing VA	772	10.361	4.145	1.431	24.558	1.45	1.18	0.236
Employment in services	800	36.474	14.859	5.816	72.529	not reported	1.44	0.149
Employment in industry	800	13.221	7.252	2.255	39.252	4.50	0.78	0.435
Services VA	793	46.392	8.767	12.490	77.020	5.97	−0.35	0.728
Industry VA	788	26.059	11.362	8.020	72.153	7.87	0.10	0.923
Institutions	798	43.164	12.170	18.900	75.400	2.11	−1.04	0.297
Trade in services	743	14.616	7.598	3.147	50.145	1.40	−1.31	0.191
Inflation	768	10.605	44.502	−16.860	736.110	1.09	−0.46	0.644
Gross fixed capital formation	768	22.134	8.132	1.097	78.001	1.65	0.33	0.745
Human capital	800	23.546	8.466	1.000	49.200	2.48	0.03	0.976

	Descriptive statistics					Multicollinearity	Cross-sectional dependence test
Variable	Obs	Mean	Std. dev	Min	Max	VIF	Pesaran CSD t	CSD p-value
Inclusive growth	766	−0.329	0.396	−3.090	1.200		0.62	0.536
Structural transformation	798	41.049	13.919	1.700	72.400	2.96	−0.17	0.865
Agriculture VA	800	19.739	11.426	1.580	55.014	11.60	−1.16	0.310
Employment in agriculture	800	50.310	20.316	5.318	91.930	6.16	1.58	0.114
Manufacturing VA	772	10.361	4.145	1.431	24.558	1.45	1.18	0.236
Employment in services	800	36.474	14.859	5.816	72.529	not reported	1.44	0.149
Employment in industry	800	13.221	7.252	2.255	39.252	4.50	0.78	0.435
Services VA	793	46.392	8.767	12.490	77.020	5.97	−0.35	0.728
Industry VA	788	26.059	11.362	8.020	72.153	7.87	0.10	0.923
Institutions	798	43.164	12.170	18.900	75.400	2.11	−1.04	0.297
Trade in services	743	14.616	7.598	3.147	50.145	1.40	−1.31	0.191
Inflation	768	10.605	44.502	−16.860	736.110	1.09	−0.46	0.644
Gross fixed capital formation	768	22.134	8.132	1.097	78.001	1.65	0.33	0.745
Human capital	800	23.546	8.466	1.000	49.200	2.48	0.03	0.976

Note(s): VIF denotes variance inflation factor. The VIF column is not applicable to the dependent variable. Pesaran Cross Sectional Dependence (CSD) tests the null hypothesis of cross-sectional independence

Source(s): Computed by authors using Stata 17

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