Table 7

Results of first step GMM model

Variable nameGMM
Lag Working Poverty0.54 (0.00) ***
Trade Openness (CTS)−0.006 (0.00) ***
Growth Rate−0.18 (0.00) ***
School Enrollment−0.33 (0.00) ***
Labor Productivity0.0007 (0.01) *
Age Dependency−0.07 (0.83)
Unemployment Rate−0.39 (0.29)
Inflation0.0002 (0.72)
Number of Observations1,470
Number of Groups98
Number of Instruments90
Diagnostic Test Results 
F-value17.16
Prob > F0.000
Arellano–Bond test for AR (1)Z = −2.53 and Prob > Z = 0.011
Arellano–Bond test for AR (2)Z = −1.11 and Prob > Z = 0.265
Hansen test of over identifying restrictionsχ2 (65) = 80.52, Prob > χ2 = 0.09

Note(s):p values are shown in the parenthesis. *** indicates significant at 1% level of significance, ** indicates significant at 5% level of significance and finally * indicates significance at 10% level of significance, time dummies are included in the model

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