Table 5 Empirical results on... | Emerald Publishing

Table 5

Empirical results on remittances, investment, and institutions (Sys-GMM)

Model	B.1	B.2	B.3	B.4
Variables
Constant	2.201***	0.007	1.838***	2.344***
Constant	(6.85)	(0.01)	(12.90)	(5.79)
lnINV_GDP	0.026***	0.041***	0.049***	0.039***
lnINV_GDP	(6.22)	(8.39)	(9.67)	(6.31)
Remittances	0.007**	0.305***	0.035***	0.056**
Remittances	(2.33)	(3.07)	(3.27)	(2.85)
Institutional Variables
Economic freedom		4.664***
Economic freedom		(3.61)
Democracy			0.127*
Democracy			(1.94)
Freedom				0.260*
Freedom				(1.41)
Interaction terms
Rem*Economic freedom		−0.471***
Rem*Economic freedom		(−3.00)
Rem*Democracy			−0.039***
Rem*Democracy			(−2.88)
Rem*Freedom				−0.080**
Rem*Freedom				(−2.58)
Control Variables
Inflation	0.003	0.005	0.023***	0.008**
Inflation	(0.81)	(0.86)	(2.80)	(2.06)
Deposit int. rate	0.006	−0.006	−0.014	0.003
Deposit int. rate	(1.09)	(−0.55)	(−1.97)	(0.50)
Household final. Con	−0.003***	−0.006**	−0.001	−0.008*
Household final. Con	(−2.85)	(−2.27)	(−0.41)	(−1.96)
Trade openness	0.001*	0.002*	0.002**	0.001*
Trade openness	(1.62)	(1.24)	(2.68)	(0.48)
Population	0.0327	0.132	0.00588	0.0201
Population	(0.78)	(1.41)	(0.26)	(0.52)
GDP growth rate	0.012*	0.003*	0.011	0.038***
GDP growth rate	(1.86)	(0.41)	(1.37)	(2.85)
Human Capital	0.412	1.667**	0.098*	0.223*
Human Capital	(1.06)	(2.55)	(0.45)	(0.78)
Tests
No. of observation	420	420	420	420
Number of countries	30	30	30	30
Number of Instruments	23	26	26	26
AR (1)	0.005	0.016	0.008	0.012
AR (2)	0.987	0.820	0.851	0.971
Hansen test	0.433	0.583	0.253	0.357

Model	B.1	B.2	B.3	B.4
Variables
Constant	2.201***	0.007	1.838***	2.344***
Constant	(6.85)	(0.01)	(12.90)	(5.79)
lnINV_GDP	0.026***	0.041***	0.049***	0.039***
lnINV_GDP	(6.22)	(8.39)	(9.67)	(6.31)
Remittances	0.007**	0.305***	0.035***	0.056**
Remittances	(2.33)	(3.07)	(3.27)	(2.85)
Institutional Variables
Economic freedom		4.664***
Economic freedom		(3.61)
Democracy			0.127*
Democracy			(1.94)
Freedom				0.260*
Freedom				(1.41)
Interaction terms
Rem*Economic freedom		−0.471***
Rem*Economic freedom		(−3.00)
Rem*Democracy			−0.039***
Rem*Democracy			(−2.88)
Rem*Freedom				−0.080**
Rem*Freedom				(−2.58)
Control Variables
Inflation	0.003	0.005	0.023***	0.008**
Inflation	(0.81)	(0.86)	(2.80)	(2.06)
Deposit int. rate	0.006	−0.006	−0.014	0.003
Deposit int. rate	(1.09)	(−0.55)	(−1.97)	(0.50)
Household final. Con	−0.003***	−0.006**	−0.001	−0.008*
Household final. Con	(−2.85)	(−2.27)	(−0.41)	(−1.96)
Trade openness	0.001*	0.002*	0.002**	0.001*
Trade openness	(1.62)	(1.24)	(2.68)	(0.48)
Population	0.0327	0.132	0.00588	0.0201
Population	(0.78)	(1.41)	(0.26)	(0.52)
GDP growth rate	0.012*	0.003*	0.011	0.038***
GDP growth rate	(1.86)	(0.41)	(1.37)	(2.85)
Human Capital	0.412	1.667**	0.098*	0.223*
Human Capital	(1.06)	(2.55)	(0.45)	(0.78)
Tests
No. of observation	420	420	420	420
Number of countries	30	30	30	30
Number of Instruments	23	26	26	26
AR (1)	0.005	0.016	0.008	0.012
AR (2)	0.987	0.820	0.851	0.971
Hansen test	0.433	0.583	0.253	0.357

Note(s): t-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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