OLS, RE and FE estimations using conditional variance of exchange rate
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Variables/approach | OLS | RE | FE | OLS | RE | FE |
| Exchange rate volatility | −4.01e-08 (3.02e-08) | −6.78e-08*** (2.03e-08) | −6.53e-08*** (2.04e-08) | |||
| Exchange rate volatility (t-1) | −6.40e-08 (3.93e-08) | −8.32e-08*** (2.58e-08) | −7.94e-08*** (2.59e-08) | |||
| Level of output | 1.321*** (0.0548) | 1.103*** (0.148) | 1.530* (0.891) | 1.313*** (0.0570) | 1.111*** (0.148) | 1.645* (0.929) |
| Output volatility | 0.0328 (0.0362) | −0.0339 (0.0254) | −0.0432* (0.0256) | 0.0373 (0.0375) | −0.0567** (0.0272) | −0.0694** (0.0275) |
| Level of income | 1.240*** (0.154) | 0.181 (0.302) | −1.139* (0.683) | 1.181*** (0.160) | 0.190 (0.309) | −1.293* (0.719) |
| Bilateral distance | −3.208*** (0.132) | −2.946*** (0.364) | −3.181*** (0.138) | −2.930*** (0.362) | ||
| Common language | 8.754*** (1.778) | 6.591 (5.217) | 8.653*** (1.857) | 6.664 (5.179) | ||
| Common border | −1.878*** (0.218) | −1.527** (0.625) | −1.831*** (0.226) | −1.528* (0.621)* | ||
| Constant | 7.247***(1.370) | 14.67*** (3.326) | −2.672 (5.855) | 7.118*** (1.440) | 14.36*** (3.357) | −2.717 (6.173) |
| Observations | 622 | 622 | 622 | 573 | 573 | 573 |
| R-squared | ||||||
| Overall | 0.721 | 0.6900 | 0.3241 | 0.720 | 0.6897 | 0.3315 |
| Within | 0.0452 | 0.0555 | 0.0541 | 0.0665 | ||
| Between | 0.7522 | 0.3306 | 0.7531 | 0.3345 | ||
| Year dummy | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-pair | 56 | 56 | 56 | 56 | 56 | 56 |
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Variables/approach | OLS | RE | FE | OLS | RE | FE |
| Exchange rate volatility | −4.01e-08 (3.02e-08) | −6.78e-08*** (2.03e-08) | −6.53e-08*** (2.04e-08) | |||
| Exchange rate volatility ( | −6.40e-08 (3.93e-08) | −8.32e-08*** (2.58e-08) | −7.94e-08*** (2.59e-08) | |||
| Level of output | 1.321*** (0.0548) | 1.103*** (0.148) | 1.530* (0.891) | 1.313*** (0.0570) | 1.111*** (0.148) | 1.645* (0.929) |
| Output volatility | 0.0328 (0.0362) | −0.0339 (0.0254) | −0.0432* (0.0256) | 0.0373 (0.0375) | −0.0567** (0.0272) | −0.0694** (0.0275) |
| Level of income | 1.240*** (0.154) | 0.181 (0.302) | −1.139* (0.683) | 1.181*** (0.160) | 0.190 (0.309) | −1.293* (0.719) |
| Bilateral distance | −3.208*** (0.132) | −2.946*** (0.364) | −3.181*** (0.138) | −2.930*** (0.362) | ||
| Common language | 8.754*** (1.778) | 6.591 (5.217) | 8.653*** (1.857) | 6.664 (5.179) | ||
| Common border | −1.878*** (0.218) | −1.527** (0.625) | −1.831*** (0.226) | −1.528* (0.621)* | ||
| Constant | 7.247***(1.370) | 14.67*** (3.326) | −2.672 (5.855) | 7.118*** (1.440) | 14.36*** (3.357) | −2.717 (6.173) |
| Observations | 622 | 622 | 622 | 573 | 573 | 573 |
| Overall | 0.721 | 0.6900 | 0.3241 | 0.720 | 0.6897 | 0.3315 |
| Within | 0.0452 | 0.0555 | 0.0541 | 0.0665 | ||
| Between | 0.7522 | 0.3306 | 0.7531 | 0.3345 | ||
| Year dummy | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-pair | 56 | 56 | 56 | 56 | 56 | 56 |
Note(s): S.E. in parentheses. *, ** and ***Significant at 10, 5 and 1% level, respectively
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