Table 4 Bias-corrected method of moments...

Table 4

Bias-corrected method of moments results

Variable	(1)	(2)	(3)	(4)
Lagged inclusive growth	0.2678**	0.1371	0.1300	0.1341
Lagged inclusive growth	(0.1286)	(0.1670)	(0.1638)	(0.1540)
Structural transformation	0.0327***	0.0276***	0.0282***	0.0332***
Structural transformation	(0.0084)	(0.0080)	(0.0082)	(0.0108)
Agriculture VA	0.0430***
Agriculture VA	(0.0118)
Industry VA		−0.0030
Industry VA		(0.0023)
Manufacturing VA	−0.0284	−0.0586	−0.0592	−0.0590
Manufacturing VA	(0.0537)	(0.0537)	(0.0529)	(0.0498)
Services VA				−0.0104
Services VA				(0.0068)
Employment in agriculture			−0.0046
Employment in agriculture			(0.0559)
Employment in industry	0.1583	0.0323	0.0071	−0.0765
Employment in industry	(0.1591)	(0.1697)	(0.2237)	(0.1933)
Employment in services	−0.0454	−0.0016	omitted	0.0317
Employment in services	(0.0478)	(0.0562)		(0.0638)
Gross fixed capital formation	−0.0404***	−0.0408***	−0.0410***	−0.0444***
Gross fixed capital formation	(0.0051)	(0.0033)	(0.0036)	(0.0070)
Trade in services	0.0271***	0.0311***	0.0297***	0.0224***
Trade in services	(0.0017)	(0.0018)	(0.0011)	(0.0021)
Inflation	−0.0076**	−0.0078	−0.0076	−0.0064
Inflation	(0.0033)	(0.0053)	(0.0056)	(0.0051)
Institutions	−0.0058	0.0074	0.0086	0.0119
Institutions	(0.0115)	(0.0112)	(0.0100)	(0.0099)
Human capital	0.0152**	−0.0087***	−0.0090***	−0.0069*
Human capital	(0.0068)	(0.0022)	(0.0023)	(0.0029)
Constant	−2.9306***	−0.8059	−0.3300	−0.0502
Constant	(0.6925)	(0.4933)	(6.0007)	(0.5848)
Observations	595	595	595	590
Instruments	13	13	12	13
Hansen, p-value	0.3145	0.4193	0.3477	0.3926
Countries	32	32	32	32
AR(1) test, p-value	0.050	0.095	0.100	0.107
AR(2) test, p-value	0.988	0.981	0.955	0.818

Variable	(1)	(2)	(3)	(4)
Lagged inclusive growth	0.2678**	0.1371	0.1300	0.1341
Lagged inclusive growth	(0.1286)	(0.1670)	(0.1638)	(0.1540)
Structural transformation	0.0327***	0.0276***	0.0282***	0.0332***
Structural transformation	(0.0084)	(0.0080)	(0.0082)	(0.0108)
Agriculture VA	0.0430***
Agriculture VA	(0.0118)
Industry VA		−0.0030
Industry VA		(0.0023)
Manufacturing VA	−0.0284	−0.0586	−0.0592	−0.0590
Manufacturing VA	(0.0537)	(0.0537)	(0.0529)	(0.0498)
Services VA				−0.0104
Services VA				(0.0068)
Employment in agriculture			−0.0046
Employment in agriculture			(0.0559)
Employment in industry	0.1583	0.0323	0.0071	−0.0765
Employment in industry	(0.1591)	(0.1697)	(0.2237)	(0.1933)
Employment in services	−0.0454	−0.0016	omitted	0.0317
Employment in services	(0.0478)	(0.0562)		(0.0638)
Gross fixed capital formation	−0.0404***	−0.0408***	−0.0410***	−0.0444***
Gross fixed capital formation	(0.0051)	(0.0033)	(0.0036)	(0.0070)
Trade in services	0.0271***	0.0311***	0.0297***	0.0224***
Trade in services	(0.0017)	(0.0018)	(0.0011)	(0.0021)
Inflation	−0.0076**	−0.0078	−0.0076	−0.0064
Inflation	(0.0033)	(0.0053)	(0.0056)	(0.0051)
Institutions	−0.0058	0.0074	0.0086	0.0119
Institutions	(0.0115)	(0.0112)	(0.0100)	(0.0099)
Human capital	0.0152**	−0.0087***	−0.0090***	−0.0069*
Human capital	(0.0068)	(0.0022)	(0.0023)	(0.0029)
Constant	−2.9306***	−0.8059	−0.3300	−0.0502
Constant	(0.6925)	(0.4933)	(6.0007)	(0.5848)
Observations	595	595	595	590
Instruments	13	13	12	13
Hansen, p-value	0.3145	0.4193	0.3477	0.3926
Countries	32	32	32	32
AR(1) test, p-value	0.050	0.095	0.100	0.107
AR(2) test, p-value	0.988	0.981	0.955	0.818

Note(s): ***p < 0.1, **p < 0.05, *p < 0.01. Column (1) excludes industry VA, employment in agriculture and services VA; column (2) excludes agriculture VA, employment in agriculture and services VA; column (3) excludes agriculture VA, industry VA and services VA; Column (4) excludes agriculture VA, industry VA and employment in agriculture. Standard errors are reported in parentheses. Inclusive growth (L1) denotes one-period lagged inclusive growth. AR(1) and AR(2) report the p-values for the null hypothesis of no first and second-order serial correlation, respectively

Source(s): Computed by authors using secondary data with Stata 15 output

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