Preliminary estimates through pooled OLS, fixed effect and random effect models
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Variable name | Pooled OLS | Fixed effect | Random effect |
| Trade Openness (CTS) | 0.005 (0.02) ** | −0.012 (0.00) *** | −0.011 (0.00) *** |
| Growth Rate | 0.069 (0.34) | −0.087 (0.00) *** | −0.089 (0.00) *** |
| School Enrollment | 0.092 (0.00) *** | −0.107 (0.00) *** | −0.100 (0.00) *** |
| Labor Productivity | −0.0006 (0.00) *** | −0.0004 (0.00) *** | −0.0004 (0.00) *** |
| Age Dependency | 0.827 (0.00) *** | 0.725 (0.00) *** | 0.736 (0.00) *** |
| Unemployment Rate | −0.398 (0.00) *** | 0.079 (0.28) | 0.008 (0.91) |
| Inflation | 0.0015 (0.02) ** | 0.0002 (0.49) | −0.0002 (0.46) |
| Constant | −35.891 (0.00) *** | −12.386 (0.00) *** | −12.675 (0.00) *** |
| Number of Observations | 1,666 | 1,666 | 1,666 |
| Number of Groups | – | 98 | 98 |
| F-value | 386.99 | 107.41 | – |
| Prob > F | 0.000 | 0.00 | 0.00 |
| Wald χ2 | – | – | 904.32 |
| Prob > χ2 | – | – | 0.00 |
| Overall R2 | 0.62 | 0.56 | 0.57 |
| Diagnostic Tests | |||
| Breusch and Pagan Lagrangian Multiplier Test: prob > chibar2 = 0.000 | |||
| Hausman Test: prob > χ2 = 0.000 | |||
| Modified Wald Test for group wise Heteroskedasticity: prob > χ2 = 0.000 | |||
| Wooldridge Test for autocorrelation in panel data: prob > F = 0.000 | |||
| Testing for Time Fixed Effect: prob > F= 0.000 | |||
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Variable name | Pooled OLS | Fixed effect | Random effect |
| Trade Openness (CTS) | 0.005 (0.02) ** | −0.012 (0.00) *** | −0.011 (0.00) *** |
| Growth Rate | 0.069 (0.34) | −0.087 (0.00) *** | −0.089 (0.00) *** |
| School Enrollment | 0.092 (0.00) *** | −0.107 (0.00) *** | −0.100 (0.00) *** |
| Labor Productivity | −0.0006 (0.00) *** | −0.0004 (0.00) *** | −0.0004 (0.00) *** |
| Age Dependency | 0.827 (0.00) *** | 0.725 (0.00) *** | 0.736 (0.00) *** |
| Unemployment Rate | −0.398 (0.00) *** | 0.079 (0.28) | 0.008 (0.91) |
| Inflation | 0.0015 (0.02) ** | 0.0002 (0.49) | −0.0002 (0.46) |
| Constant | −35.891 (0.00) *** | −12.386 (0.00) *** | −12.675 (0.00) *** |
| Number of Observations | 1,666 | 1,666 | 1,666 |
| Number of Groups | – | 98 | 98 |
| F-value | 386.99 | 107.41 | – |
| Prob > | 0.000 | 0.00 | 0.00 |
| Wald | – | – | 904.32 |
| Prob > | – | – | 0.00 |
| Overall | 0.62 | 0.56 | 0.57 |
| Diagnostic Tests | |||
| Breusch and Pagan Lagrangian Multiplier Test: prob > chibar2 = 0.000 | |||
| Hausman Test: prob > | |||
| Modified Wald Test for group wise Heteroskedasticity: prob > | |||
| Wooldridge Test for autocorrelation in panel data: prob > | |||
| Testing for Time Fixed Effect: prob > | |||
Note(s): p values are shown in the parenthesis. ***, ** and * indicates significant at 1%, 5% and 10% level of significance respectively
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