Table 2 Impact of the volatility of...

Table 2

Impact of the volatility of resource revenue on the volatility of non-resource revenue. Estimator: Two-step system GMM

Variables	Log(NRESREVVOL)	Log(NRESREVVOL)
Variables	(1)	(2)
Log(NRESREVVOL)_t−1	0.154***	0.136***
Log(NRESREVVOL)_t−1	(0.0347)	(0.0287)
Log(RESREVVOL)	0.127***	−0.0716**
Log(RESREVVOL)	(0.0480)	(0.0353)
DUMOUTL		−3.706***
DUMOUTL		(0.100)
[DUMOUTL]*[Log(RESREVVOL)]		0.863***
[DUMOUTL]*[Log(RESREVVOL)]		(0.0493)
Log(SHRESREV)	0.500***	0.260***
Log(SHRESREV)	(0.0640)	(0.0564)
Log(GDPC)	0.387***	0.263***
Log(GDPC)	(0.0470)	(0.0349)
Log(GRVOL)	−0.279***	−0.214***
Log(GRVOL)	(0.0276)	(0.0313)
Log(OPEN)	0.692***	0.601***
Log(OPEN)	(0.109)	(0.130)
Log(TERMSVOL)	0.0633	0.175***
Log(TERMSVOL)	(0.0544)	(0.0552)
Log(INFLVOL)	0.222***	0.182***
Log(INFLVOL)	(0.0404)	(0.0443)
Constant	−6.611***	−3.935***
Constant	(1.032)	(0.944)
Observations – countries	163–47	163–47
Number of instruments	36	38
AR1 (p-value)	0.0278	0.0137
AR2 (p-value)	0.2970	0.2086
AR3 (p-value)	0.4030	0.8416
Sargan (p-value)	0.6711	0.8844

Variables	Log(NRESREVVOL)	Log(NRESREVVOL)
Variables	(1)	(2)
Log(NRESREVVOL)_t−1	0.154***	0.136***
Log(NRESREVVOL)_t−1	(0.0347)	(0.0287)
Log(RESREVVOL)	0.127***	−0.0716**
Log(RESREVVOL)	(0.0480)	(0.0353)
DUMOUTL		−3.706***
DUMOUTL		(0.100)
[DUMOUTL]*[Log(RESREVVOL)]		0.863***
[DUMOUTL]*[Log(RESREVVOL)]		(0.0493)
Log(SHRESREV)	0.500***	0.260***
Log(SHRESREV)	(0.0640)	(0.0564)
Log(GDPC)	0.387***	0.263***
Log(GDPC)	(0.0470)	(0.0349)
Log(GRVOL)	−0.279***	−0.214***
Log(GRVOL)	(0.0276)	(0.0313)
Log(OPEN)	0.692***	0.601***
Log(OPEN)	(0.109)	(0.130)
Log(TERMSVOL)	0.0633	0.175***
Log(TERMSVOL)	(0.0544)	(0.0552)
Log(INFLVOL)	0.222***	0.182***
Log(INFLVOL)	(0.0404)	(0.0443)
Constant	−6.611***	−3.935***
Constant	(1.032)	(0.944)
Observations – countries	163–47	163–47
Number of instruments	36	38
AR1 (p-value)	0.0278	0.0137
AR2 (p-value)	0.2970	0.2086
AR3 (p-value)	0.4030	0.8416
Sargan (p-value)	0.6711	0.8844

Note(s): *p-value < 0.1; **p-value < 0.05; ***p-value < 0.01. Robust standard errors are in parenthesis. In the two-step system GMM estimations, the variables “RESREVVOL” and “OPEN” have been considered as endogenous

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