Estimates of the regression models
| Levels | First differences | Levels | First differences | |||
|---|---|---|---|---|---|---|
| Regressors (independent variables) and statistics | Fixed effects | OLS | Two-step GMM | Fixed effects | OLS | Two-step GMM |
| Coefficient (p-value) [1] | Coefficient (p-value) [2] | Coefficient (p-value) [3] | Coefficient (p-value) [4] | Coefficient (p-value) [5] | Coefficient (p-value) [6] | |
| OMEit | 0.083 (0.220) | 0.133** (0.020) | 0.083* (0.073) | 0.104** (0.048) | 0.169** (0.009) | 0.142** (0.009) |
| INFit | −0.016 (0.410) | −0.027 (0.163) | −0.007 (0.621) | −0.013 (0.520) | −0.025 (0.211) | −0.025 (0.152) |
| Corruption | −1.567 (0.532) | −1.055 (0.732) | −1.778 (0.458) | −2.219 (0.396) | −1.708 (0.637) | −1.536 (0.653) |
| ODAit | 0.278 (0.110) | 0.468* (0.062) | 0.390** (0.010) | – | – | – |
| (ODA·LI)it | – | – | – | 0.178 (0.356) | 0.215 (0.328) | 0.262 (0.191) |
| (ODA·LM)it | – | – | – | 0.478** (0.036) | 0.924** (0.023) | 0.972*** (0.000) |
| (ODA·UM)it | – | – | – | 0.383** (0.035) | 0.168 (0.591) | 0.156 (0.567) |
| FDI_init−1 | 0.277** (0.024) | 0.182 (0.196) | 0.260** (0.033) | – | – | – |
| (FDI_in·LI)it−1 | – | – | – | 0.697*** (0.000) | 0.481** (0.019) | 0.497** (0.004) |
| (FDI_in·LM)it−1 | – | – | – | 0.177*** (0.001) | −0.046 (0.928) | 0.102 (0.822) |
| (FDI_in·UM)it−1 | – | – | – | 0.024 (0.746) | 0.010 (0.911) | 0.248 (0.734) |
| FDI_outit | 0.514** (0.003) | 0.496** (0.022) | 0.391** (0.022) | – | – | – |
| (FDI_out·LI)it | – | – | – | 0.626*** (0.000) | 0.609*** (0.001) | 0.521** (0.003) |
| (FDI_out·LM)it | – | – | – | 0.004 (0.986) | −0.281 (0.575) | −0.163 (0.566) |
| (FDI_out·UM)it | – | – | – | 0.122 (0.592) | 0.484** (0.024) | 0.552*** (0.001) |
| m1 (p-value) | −0.48 (0.631) | −2.54** (0.011) | −1.49 (0.135) | −1.01 (0.313) | −2.75** (0.006) | −1.74* (0.081) |
| m2 (p-value) | 0.33 (0.741) | 1.29 (0.198) | 1.00 (0.316) | 0.22 (0.825) | 1.22 (0.221) | 0.97 (0.330) |
| CN | 3.23 | – | – | 3.50 | ||
| Breusch–Pagan (p-value) | 689.44*** (0.000) | – | – | 695.46*** (0.000) | – | – |
| Hansen J statistic (p-value) | – | – | 9.61 (0.476) | – | – | 6.91 (0.938) |
| # Observations | 405 | 351 | 341 | 405 | 351 | 348 |
| Levels | First differences | Levels | First differences | |||
|---|---|---|---|---|---|---|
| Regressors (independent variables) and statistics | Fixed effects | OLS | Two-step GMM | Fixed effects | OLS | Two-step GMM |
| Coefficient ( | Coefficient ( | Coefficient ( | Coefficient ( | Coefficient ( | Coefficient ( | |
| 0.083 (0.220) | 0.133** (0.020) | 0.083 | 0.104** (0.048) | 0.169** (0.009) | 0.142** (0.009) | |
| −0.016 (0.410) | −0.027 (0.163) | −0.007 (0.621) | −0.013 (0.520) | −0.025 (0.211) | −0.025 (0.152) | |
| −1.567 (0.532) | −1.055 (0.732) | −1.778 (0.458) | −2.219 (0.396) | −1.708 (0.637) | −1.536 (0.653) | |
| 0.278 (0.110) | 0.468 | 0.390** (0.010) | – | – | – | |
| – | – | – | 0.178 (0.356) | 0.215 (0.328) | 0.262 (0.191) | |
| – | – | – | 0.478** (0.036) | 0.924** (0.023) | 0.972*** (0.000) | |
| – | – | – | 0.383** (0.035) | 0.168 (0.591) | 0.156 (0.567) | |
| 0.277** (0.024) | 0.182 (0.196) | 0.260** (0.033) | – | – | – | |
| – | – | – | 0.697*** (0.000) | 0.481** (0.019) | 0.497** (0.004) | |
| – | – | – | 0.177*** (0.001) | −0.046 (0.928) | 0.102 (0.822) | |
| – | – | – | 0.024 (0.746) | 0.010 (0.911) | 0.248 (0.734) | |
| 0.514** (0.003) | 0.496** (0.022) | 0.391** (0.022) | – | – | – | |
| – | – | – | 0.626*** (0.000) | 0.609*** (0.001) | 0.521** (0.003) | |
| – | – | – | 0.004 (0.986) | −0.281 (0.575) | −0.163 (0.566) | |
| – | – | – | 0.122 (0.592) | 0.484** (0.024) | 0.552*** (0.001) | |
| m1 ( | −0.48 (0.631) | −2.54** (0.011) | −1.49 (0.135) | −1.01 (0.313) | −2.75** (0.006) | −1.74* (0.081) |
| m2 ( | 0.33 (0.741) | 1.29 (0.198) | 1.00 (0.316) | 0.22 (0.825) | 1.22 (0.221) | 0.97 (0.330) |
| CN | 3.23 | – | – | 3.50 | ||
| Breusch–Pagan ( | 689.44*** (0.000) | – | – | 695.46*** (0.000) | – | – |
| Hansen | – | – | 9.61 (0.476) | – | – | 6.91 (0.938) |
| # Observations | 405 | 351 | 341 | 405 | 351 | 348 |
Notes:
The dependent variable is IFFTit (trade-related IFFs as a percentage of total trade). Period 2008–2017. Unbalanced panel. Maximum observations per country 9, minimum 1. Heteroskedasticy-Autocorrelation consistent standard errors, clustered at the country level. m1 and m2 are the Arellano-Bond autocorrelation tests of first and second order, respectively. The null is no autocorrelation. CN is the condition number (Belsley et al., 1980). Breusch–Pagan is the Lagrangian multiplier test for random effects. A rejection of the null hypothesis indicates that the fixed effects (FE) model is consistent. Hansen J statistic evaluates the validity of the instruments set, testing for over-identifying restrictions. In columns [3] and [6], the instruments used was lagged values of independent variables in levels and the first differences of the following variables: the log of per capita GDP and the Corruption Perception Index level. In addition, the first difference of the rate of total exports to GDP and total imports to GDP were also included as instruments in column [3].
Denotes significance at the 10% level, **at the 5% level and ***at the 1% level