Table 3 Empirical results on... | Emerald Publishing

Table 3

Empirical results on remittances, investment, and Institutions(2SLS)

Model	A.1	A.2	A.3	A.4
Variables
Constant	0.694***	0.176	0.919***	0.850***
Constant	(5.31)	(0.63)	(5.69)	(6.27)
lnINV_GDP	0.743***	0.759***	0.779***	0.755***
lnINV_GDP	(23.99)	(24.86)	(22.62)	(25.02)
Remittances	0.012**	0.162**	0.064**	0.036***
Remittances	(2.31)	(2.12)	(2.26)	(2.84)
Institutional Variables
Economic freedom		0.171***
Economic freedom		(2.72)
Democracy			0.296**
Democracy			(2.37)
Freedom				0.258***
Freedom				(3.27)
Interaction terms
Rem*Economic freedom		−0.248**
Rem*Economic freedom		(−2.08)
Rem*Democracy			−0.079*
Rem*Democracy			(−2.13)
Rem*Freedom				−0.052**
Rem*Freedom				(−2.55)
Control Variables
Inflation	0.002	0.003	0.006	0.002
Inflation	(0.96)	(1.23)	(1.84)	(0.96)
Deposit int. rate	0.004	0.002	−0.009	0.001
Deposit int. rate	(1.40)	(0.45)	(−1.29)	(0.38)
Household final. Con	−0.004***	−0.004***	−0.005***	−0.005***
Household final. Con	(−5.36)	(−6.04)	(−4.87)	(−5.77)
Trade openness	0.001***	0.002***	0.001***	0.002***
Trade openness	(4.33)	(5.28)	(3.72)	(4.68)
Population	0.058***	0.058***	0.025	0.035**
Population	(3.24)	(3.53)	(1.41)	(2.37)
GDP growth rate	0.007***	0.003**	0.008***	0.007**
GDP growth rate	(2.64)	(2.21)	(2.52)	(2.48)
Human Capital	0.054	0.458***	0.482**	0.315**
Human Capital	(0.37)	(2.61)	(2.29)	(2.29)
Tests
No. of observation	420	420	420	420
Number of countries	30	30	30	30
R²	0.344	0.445	0.304	0.315
Endogeneity test (p-value)	0.031	0.021	0.044	0.026
Cragg-Donald F-statistics	38.239	28.923	10.505	13.957
Overidentification Test	0.413	0.167	0.532	0.476

Model	A.1	A.2	A.3	A.4
Variables
Constant	0.694***	0.176	0.919***	0.850***
Constant	(5.31)	(0.63)	(5.69)	(6.27)
lnINV_GDP	0.743***	0.759***	0.779***	0.755***
lnINV_GDP	(23.99)	(24.86)	(22.62)	(25.02)
Remittances	0.012**	0.162**	0.064**	0.036***
Remittances	(2.31)	(2.12)	(2.26)	(2.84)
Institutional Variables
Economic freedom		0.171***
Economic freedom		(2.72)
Democracy			0.296**
Democracy			(2.37)
Freedom				0.258***
Freedom				(3.27)
Interaction terms
Rem*Economic freedom		−0.248**
Rem*Economic freedom		(−2.08)
Rem*Democracy			−0.079*
Rem*Democracy			(−2.13)
Rem*Freedom				−0.052**
Rem*Freedom				(−2.55)
Control Variables
Inflation	0.002	0.003	0.006	0.002
Inflation	(0.96)	(1.23)	(1.84)	(0.96)
Deposit int. rate	0.004	0.002	−0.009	0.001
Deposit int. rate	(1.40)	(0.45)	(−1.29)	(0.38)
Household final. Con	−0.004***	−0.004***	−0.005***	−0.005***
Household final. Con	(−5.36)	(−6.04)	(−4.87)	(−5.77)
Trade openness	0.001***	0.002***	0.001***	0.002***
Trade openness	(4.33)	(5.28)	(3.72)	(4.68)
Population	0.058***	0.058***	0.025	0.035**
Population	(3.24)	(3.53)	(1.41)	(2.37)
GDP growth rate	0.007***	0.003**	0.008***	0.007**
GDP growth rate	(2.64)	(2.21)	(2.52)	(2.48)
Human Capital	0.054	0.458***	0.482**	0.315**
Human Capital	(0.37)	(2.61)	(2.29)	(2.29)
Tests
No. of observation	420	420	420	420
Number of countries	30	30	30	30
R²	0.344	0.445	0.304	0.315
Endogeneity test (p-value)	0.031	0.021	0.044	0.026
Cragg-Donald F-statistics	38.239	28.923	10.505	13.957
Overidentification Test	0.413	0.167	0.532	0.476

Note(s): z-statistics in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1 show significance at 1, 5 and 10% respectively

Source(s): Authors' computations

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