Table 7 Two stage least squares (2SLS)...

Table 7

Two stage least squares (2SLS)

GDP (dependent variable)
Variables	Higher democracy index		Lower democracy index
Variables	Baseline regression	Two stage least square	Baseline regression	Two stage least square
GDP (1)	0.71***	0.70***	0.80***	0.81***
GDP (1)	(−0.095)	(0.09)	(0.075)	(0.086)
REM	−1.18	−1.06	1.34*	1.55**
REM	(0.747)	(0.73)	(0.731)	(0.631)
DEM	−6.78*	−6.1*	6.13**	7.27**
DEM	(4.05)	(3.51)	(2.92)	(3.38)
GMI	−0.004	−0.002	0.008*	0.009*
GMI	(0.004)	(0.008)	(0.004)	(0.005)
REM*DEM	0.27*	0.25*	−0.263**	−0.312**
REM*DEM	(0.17)	(0.146)	(0.125)	(0.147)
POP	−0.32*	−0.28*	0.094	0.112
POP	(0.17)	(0.14)	(0.132)	(0.144)
Observations	102	96	119	112
Durbin	–	0.5430	–	0.6534
Wu-Hausman	–	0.5611	–	0.6658
Sargan	–	0.9345		0.1409
Basmann	–	0.9489		0.1565
R-squared	0.61	0.6295	0.7487	0.7405
F-stat	0.00	0.00	0.00	0.00

GDP (dependent variable)
Variables	Higher democracy index		Lower democracy index
Variables	Baseline regression	Two stage least square	Baseline regression	Two stage least square
GDP (1)	0.71***	0.70***	0.80***	0.81***
GDP (1)	(−0.095)	(0.09)	(0.075)	(0.086)
REM	−1.18	−1.06	1.34*	1.55**
REM	(0.747)	(0.73)	(0.731)	(0.631)
DEM	−6.78*	−6.1*	6.13**	7.27**
DEM	(4.05)	(3.51)	(2.92)	(3.38)
GMI	−0.004	−0.002	0.008*	0.009*
GMI	(0.004)	(0.008)	(0.004)	(0.005)
REM*DEM	0.27*	0.25*	−0.263**	−0.312**
REM*DEM	(0.17)	(0.146)	(0.125)	(0.147)
POP	−0.32*	−0.28*	0.094	0.112
POP	(0.17)	(0.14)	(0.132)	(0.144)
Observations	102	96	119	112
Durbin	–	0.5430	–	0.6534
Wu-Hausman	–	0.5611	–	0.6658
Sargan	–	0.9345		0.1409
Basmann	–	0.9489		0.1565
R-squared	0.61	0.6295	0.7487	0.7405
F-stat	0.00	0.00	0.00	0.00

Note(s): Robust standard errors in parentheses, ***p < 0.01, **p < 0.05 and *p < 0.1. Countries are grouped based on democracy index. GDP: Gross Domestic Product, REM: Personal Remittances, DEM: Democracy Index, GMI: Gross Militarization Index, POP: Population

Source(s): Author's own computations

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