Table 1 Main empirical results – panel...

Table 1

Main empirical results – panel data model

Variables dependent: corr (ZAR, BRIC)	Model 1 (ordinary least squares)		Model 2 (Driscoll and Kraay, 1998)
Variables dependent: corr (ZAR, BRIC)	Coeff	Std errors	Coeff	Robust std errors
Trade intensity (trade)	−2.1413	0.3164	−2.1413	0.5519
Trade intensity (trade)	[−6.7700]	(0.0000***)	[−3.8800]	(0.0000***)
BRICSexist	−0.1703	0.0379	−0.1703	0.0237
BRICSexist	[−4.500]	(0.0000***)	[−7.1900]	(0.0000***)
Trade x BRICSexist	1.6435	0.2612	1.6435	0.4210
Trade x BRICSexist	[6.2900]	(0.0000***)	[3.900]	(0.0000***)
Trade x surplus-deficit	0.5258	0.2061	0.5258	0.2230
Trade x surplus-deficit	[2.5500]	(0.0110**)	[2.3600]	(0.0190**)
BRICS experience	−0.3359	0.1219	−0.3359	0.1595
BRICS experience	[−2.7600]	(0.0060***)	[−2.1100]	(0.0360**)
BRICS experience (sq)	0.2519	0.0920	0.2519	0.1091
BRICS experience (sq)	[2.7400]	(0.0060***)	2.3100	(0.0220**)
Leadership changes (freq)	−0.0387	0.0150	−0.0387	0.0203
Leadership changes (freq)	[−2.5900]	(0.0100***)	[−1.9100]	(0.0570*)
Interest rate differential	0.5466	0.1206	0.5466	0.1092
Interest rate differential	[4.5300]	(0.0000***)	[5.0000]	(0.0000***)
VIX	0.2391	0.0407	0.2391	0.1028
VIX	[5.8800]	(0.0000***)	[2.3300]	(0.0210**)
Geo-political risk	−0.1519	0.0373	−0.1519	0.0655
Geo-political risk	[0–4.0700]	(0.0000***)	[−2.3200]	(0.0210**)
Intercept	0.2987	0.0900	0.2987	0.1736
Intercept	[3.3200]	(0.0010***)	[1.7200]	(0.0860*)
Period effects	yes	yes	yes	yes
Overall model, F-statistic	F(35,1156)	23.0700	F(35, 298)	27.6100
Overall model, F-statistic		(0.0000***)		(0.0000***)
Common effects, F-statistic	F(3, 1157)	19.1200
Common effects, F-statistic		(0.0000***)
Sigma, (u, e): (0.97, 0.12)		Rho: 0.2656
Corr(u_i, xb)		−0.4700
Observ.: (Group, Period)		(4, 1196)		(4, 1196)
Within R_squared		0.4110		0.4100

Variables dependent: corr (ZAR, BRIC)	Model 1 (ordinary least squares)		Model 2 (Driscoll and Kraay, 1998)
Variables dependent: corr (ZAR, BRIC)	Coeff	Std errors	Coeff	Robust std errors
Trade intensity (trade)	−2.1413	0.3164	−2.1413	0.5519
Trade intensity (trade)	[−6.7700]	(0.0000***)	[−3.8800]	(0.0000***)
BRICSexist	−0.1703	0.0379	−0.1703	0.0237
BRICSexist	[−4.500]	(0.0000***)	[−7.1900]	(0.0000***)
Trade x BRICSexist	1.6435	0.2612	1.6435	0.4210
Trade x BRICSexist	[6.2900]	(0.0000***)	[3.900]	(0.0000***)
Trade x surplus-deficit	0.5258	0.2061	0.5258	0.2230
Trade x surplus-deficit	[2.5500]	(0.0110**)	[2.3600]	(0.0190**)
BRICS experience	−0.3359	0.1219	−0.3359	0.1595
BRICS experience	[−2.7600]	(0.0060***)	[−2.1100]	(0.0360**)
BRICS experience (sq)	0.2519	0.0920	0.2519	0.1091
BRICS experience (sq)	[2.7400]	(0.0060***)	2.3100	(0.0220**)
Leadership changes (freq)	−0.0387	0.0150	−0.0387	0.0203
Leadership changes (freq)	[−2.5900]	(0.0100***)	[−1.9100]	(0.0570*)
Interest rate differential	0.5466	0.1206	0.5466	0.1092
Interest rate differential	[4.5300]	(0.0000***)	[5.0000]	(0.0000***)
VIX	0.2391	0.0407	0.2391	0.1028
VIX	[5.8800]	(0.0000***)	[2.3300]	(0.0210**)
Geo-political risk	−0.1519	0.0373	−0.1519	0.0655
Geo-political risk	[0–4.0700]	(0.0000***)	[−2.3200]	(0.0210**)
Intercept	0.2987	0.0900	0.2987	0.1736
Intercept	[3.3200]	(0.0010***)	[1.7200]	(0.0860*)
Period effects	yes	yes	yes	yes
Overall model, F-statistic	F(35,1156)	23.0700	F(35, 298)	27.6100
Overall model, F-statistic		(0.0000***)		(0.0000***)
Common effects, F-statistic	F(3, 1157)	19.1200
Common effects, F-statistic		(0.0000***)
Sigma, (u, e): (0.97, 0.12)		Rho: 0.2656
Corr(u_i, xb)		−0.4700
Observ.: (Group, Period)		(4, 1196)		(4, 1196)
Within R_squared		0.4110		0.4100

Note(s): The legend for statistical significance is: *** 1%, **5% and *10%, respectively. Under the column for coefficients, the numbers without brackets are coefficients. The numbers right below the coefficients in square brackets are test statistics. Under the column labelled std errors, the numbers without brackets are standard errors. The numbers below standard errors in round brackets are p values

Source(s): Authors' computations

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