Table 4

OLS, RE and FE estimations using standardized value (standard deviation) of exchange rate

(1)(2)(3)(4)(5)(6)
Variables/approachOLSREFEOLSREFE
Exchange rate volatility−0.282*** (0.0694)−0.431** (0.182)−1.167** (0.547)   
Exchange rate volatility (t-1)   −0.290*** (0.0725)−0.414** (0.182)−1.163* (0.600)
Level of output1.281*** (0.0548)1.055*** (0.146)1.606* (0.897)1.275*** (0.0571)1.066*** (0.146)1.774* (0.936)
Output volatility0.0368 (0.0357)−0.0306 (0.0256)−0.0471* (0.0261)0.0432 (0.0369)−0.0525* (0.0274)−0.0726*** (0.0280)
Level of income1.211*** (0.152)0.223 (0.298)−1.078 (0.690)1.152*** (0.158)0.238 (0.304)−1.255* (0.726)
Bilateral distance−3.231*** (0.130)−2.997*** (0.353) −3.203*** (0.136)−2.984*** (0.351) 
Common language9.226*** (1.746)7.541 (5.019) 9.219*** (1.821)7.622 (4.983) 
Common border−1.812*** (0.216)−1.443** (0.603) −1.767*** (0.224)−1.448** (0.599) 
Constant7.911*** (1.345)15.11*** (3.251)−3.888 (5.954)7.729*** (1.415)14.74*** (3.283)−4.336 (6.301)
Observations622622622573573573
R-squared      
Overall0.72740.76130.28520.72660.69790.2984
Within 0.03120.0458 0.03930.0560
Between 0.69790.2858 0.76250.2958
Year dummyYesYesYesYesYesYes
Country-pair565656565656

Note(s): S.E. in parentheses. *, ** and ***Significant at 10, 5 and 1% level, respectively

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