Table 2

Panel regression with Driscoll-Kraay standard errors

VariablesModel 1Model 2Model 3
PooledFERE
lagpcgdp0.995***0.982***0.992***
(0.00652)(0.0229)(0.00783)
corr0.0542***0.01350.0240
(0.0140)(0.0182)(0.0215)
corrsq−0.0686***−0.0612**−0.0672**
(0.0131)(0.0283)(0.0258)
gfcf0.00144**0.0008090.00125**
(0.000638)(0.00205)(0.000479)
govexp−0.00840***−0.00944**−0.00408*
(0.00226)(0.00364)(0.00229)
pop0.00172−0.0203−0.0284**
(0.0176)(0.0187)(0.0124)
trade5.21e-05−6.31e-050.000117
(0.000188)(0.000460)(0.000396)
inf−0.000179−0.000393−0.000344
(0.000373)(0.000503)(0.000581)
polsta0.0138−0.009270.00423
(0.0105)(0.0121)(0.00768)
rulaw−0.0452**0.00949−0.00550
(0.0211)(0.0228)(0.0131)
corr*rulaw0.134***0.08390.0748
(0.0342)(0.0691)(0.0703)
liter0.000599**−0.000130−4.66e-05
(0.000236)(0.000179)(0.000200)
Constant0.182**00
(0.0792)(0)(0)
Hausman test2.02 (P value = 0.9998)
Observations119119119
R-squared0.9990.99750.9996

Note(s): (*, **, ***) denotes statistical significance at 10%, 5% and 1%. RE and FE estimates controls for both individual and time effects

Source(s): Author's calculations – robust standard errors reported

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