Table 9 Estimations using DPTM Dependent...

Table 9

Estimations using DPTM

Dependent variable: Economic growth
	Threshold variable
	Debt-to-GDP		Debt to exports
Independent variables	Lower regime	Upper regime	Lower regime	Upper regime
Investment	−0.0364***	0.0620***	−0.0319	0.0223**
Investment	(0.0065)	(0.0069)	(0.0228)	(0.0127)
Initial GDP	−0.0210***	−0.0798***	−0.0321***	−0.0543***
Initial GDP	(0.0061)	(0.0095)	(0.0057)	(0.0121)
Life expectancy	−0.1460***	−0.0636	0.1022*	0.0038
Life expectancy	(0.0253)	(0.0390)	(0.0557)	(0.0417)
Human capital	0.0708***	0.0708***	−0.0374**	0.0691***
Human capital	(0.0149)	(0.0150)	(0.0176)	(0.0119)
Debt	0.0753***	−0.0762***	0.0486***	−0.0456***
Debt	(0.0117)	(0.0113)	(0.0072)	(0.0074)
Threshold level	0.6711***		2.8567**
Threshold level	(0.1605)		(1.1443)
Bootstrap for threshold test¹	p-value = 0.0000		p-value = 0.0000

Dependent variable: Economic growth
	Threshold variable
	Debt-to-GDP		Debt to exports
Independent variables	Lower regime	Upper regime	Lower regime	Upper regime
Investment	−0.0364***	0.0620***	−0.0319	0.0223**
Investment	(0.0065)	(0.0069)	(0.0228)	(0.0127)
Initial GDP	−0.0210***	−0.0798***	−0.0321***	−0.0543***
Initial GDP	(0.0061)	(0.0095)	(0.0057)	(0.0121)
Life expectancy	−0.1460***	−0.0636	0.1022*	0.0038
Life expectancy	(0.0253)	(0.0390)	(0.0557)	(0.0417)
Human capital	0.0708***	0.0708***	−0.0374**	0.0691***
Human capital	(0.0149)	(0.0150)	(0.0176)	(0.0119)
Debt	0.0753***	−0.0762***	0.0486***	−0.0456***
Debt	(0.0117)	(0.0113)	(0.0072)	(0.0074)
Threshold level	0.6711***		2.8567**
Threshold level	(0.1605)		(1.1443)
Bootstrap for threshold test¹	p-value = 0.0000		p-value = 0.0000

Note(s): Standard errors are in parentheses. ***, ** and * indicate the 1, 5, and 10% significance levels, respectively

¹The null hypothesis implies the absence of threshold effects. H0 is rejected in both cases

Source(s): Table by authors

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