Table 3 Models A and B estimation...

Table 3

Models A and B estimation results of the GMM random effects model (A) and cross-section fixed effects model (B) after correction

Variables	Model A	Model B
Dependent Variable: HDI
Constant (β_o)	0.018631** (0.006209)	0.065150** (0.008330)
HDI_it-1	0.978319** (0.007460)	0.888177** (0.0001)
IFI_it	0.007012** (0.003073)	0.034558** (0.0012)
TROP_it	0.0000624** (0.000018)	0.0000259* (0.06)
FDI_it	0.000206** (0.000071)	0.0000515 (0.7377)
Number of countries	20	18
Total panel observations	194	173
Arellano-Bond test for AR(1) in first differences Arellano-Bond test for AR(2) in first differences	1.094415 (0.2738) 0.093155 (0.9258)	−1.577092 (0.1148) 0.467888 (0.6399)
Sargan test	$χ^{2}$ (1) = 0.72 (0.56)	$χ^{2}$ (1) = 0.42 (0.24)
Pesaran’s CD test	10.56 (0.55)	6.22 (0.011)
Wald test	$χ^{2}$ Probability = 0.0001	$χ^{2}$ Probability = 0.467

Variables	Model A	Model B
Dependent Variable: HDI
Constant (β_o)	0.018631** (0.006209)	0.065150** (0.008330)
HDI_it-1	0.978319** (0.007460)	0.888177** (0.0001)
IFI_it	0.007012** (0.003073)	0.034558** (0.0012)
TROP_it	0.0000624** (0.000018)	0.0000259* (0.06)
FDI_it	0.000206** (0.000071)	0.0000515 (0.7377)
Number of countries	20	18
Total panel observations	194	173
Arellano-Bond test for AR(1) in first differencesArellano-Bond test for AR(2) in first differences	1.094415 (0.2738)0.093155 (0.9258)	−1.577092 (0.1148)0.467888 (0.6399)
Sargan test	$χ^{2}$ (1) = 0.72(0.56)	$χ^{2}$ (1) = 0.42(0.24)
Pesaran’s CD test	10.56 (0.55)	6.22 (0.011)
Wald test	$χ^{2}$ Probability = 0.0001	$χ^{2}$ Probability = 0.467

Note(s): Standard errors are reported in parentheses. * and ** refer to being statistically significant at 10% and 5%, respectively