Results of endogenous EF and foreign aid
| (1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
| Thre. Var. | Government size | Legal system | Sound money | Trade freedom | Regulations |
| Thre. Value (γ) | 6.2343*** (0.2309) | 2.7270*** (0.0564) | 9.6072*** (0.0146) | 8.3466*** (0.0437) | 6.1576*** (0.1657) |
| Upper regime (Ins>γ) | |||||
| Foreign aid | 0.3107*** (0.0475) | 0.8256*** (0.2101) | 1.4502** (0.7099) | 1.3216*** (0.3388) | 0.2343** (0.0972) |
| EF | −0.3345*** (0.1259) | −0.6898*** (0.1032) | −26.9991** (11.1408) | 3.2117** (1.2837) | −0.7650*** (0.0993) |
| GDP | 0.5758*** (0.1096) | 0.7600*** (0.1164) | 2.5375** (1.1036) | 0.6763* (0.4031) | 0.7033*** (0.1277) |
| Savings | 0.0033 (0.0051) | 0.0174** (0.0074) | −0.1343 (0.0991) | 0.0146 (0.0221) | 0.0267*** (0.0029) |
| Openness | −0.0215*** (0.0024) | −0.0265*** (0.0032) | −0.0408* (0.0231) | 0.0356*** (0.0110) | −0.0020 (0.0022) |
| Population | 0.0308 (0.0911) | −2.3718*** (0.2515) | 0.3586 (0.3012) | −1.8544*** (0.5540) | 1.0304*** (0.1344) |
| Lower regime (Ins≤γ) | |||||
| Foreign aid | −0.0228 (0.0553) | −1.0510*** (0.1926) | 0.0025 (0.0209) | 0.3835*** (0.0258) | −0.1275 (0.0811) |
| EF | 0.5090*** (0.0780) | 0.7180*** (0.0944) | 0.2977*** (0.0299) | −0.1172** (0.0554) | 0.9459*** (0.0896) |
| GDP | 0.5765*** (0.0880) | 0.3789*** (0.1256) | 1.2976*** (0.0597) | 0.9460*** (0.0339) | 0.6157*** (0.1307) |
| Savings | −0.0138*** (0.0039) | −0.0281*** (0.0065) | −0.0044*** (0.0007) | −0.0003 (0.0011) | −0.0259*** (0.0026) |
| Openness | 0.0130*** (0.0020) | 0.0276*** (0.0031) | 0.0033*** (0.0005) | −0.0020*** (0.0006) | 0.0044*** (0.0015) |
| Population | 0.0059 (0.0949) | 2.3748*** (0.2520) | −0.0028 (0.0123) | 0.0328 (0.0336) | −1.0559*** (0.1406) |
| Constant | −2.4026 (1.5147) | 3.2288** (1.2640) | 238.8428** (100.0543) | −39.0629*** (13.5478) | −3.7238*** (1.2730) |
| Number of i | 62 | 62 | 62 | 62 | 62 |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes |
| (1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
| 6.2343 | 2.7270 | 9.6072 | 8.3466 | 6.1576 | |
| Foreign aid | 0.3107 | 0.8256 | 1.4502 | 1.3216 | 0.2343 |
| EF | −0.3345 | −0.6898 | −26.9991 | 3.2117 | −0.7650 |
| GDP | 0.5758 | 0.7600 | 2.5375 | 0.6763 | 0.7033 |
| Savings | 0.0033 (0.0051) | 0.0174 | −0.1343 (0.0991) | 0.0146 (0.0221) | 0.0267 |
| Openness | −0.0215 | −0.0265 | −0.0408 | 0.0356 | −0.0020 (0.0022) |
| Population | 0.0308 (0.0911) | −2.3718 | 0.3586 (0.3012) | −1.8544 | 1.0304 |
| Foreign aid | −0.0228 (0.0553) | −1.0510 | 0.0025 (0.0209) | 0.3835 | −0.1275 (0.0811) |
| EF | 0.5090 | 0.7180 | 0.2977 | −0.1172 | 0.9459 |
| GDP | 0.5765 | 0.3789 | 1.2976 | 0.9460 | 0.6157 |
| Savings | −0.0138 | −0.0281 | −0.0044 | −0.0003 (0.0011) | −0.0259 |
| Openness | 0.0130 | 0.0276 | 0.0033 | −0.0020 | 0.0044 |
| Population | 0.0059 (0.0949) | 2.3748 | −0.0028 (0.0123) | 0.0328 (0.0336) | −1.0559 |
| Constant | −2.4026 (1.5147) | 3.2288 | 238.8428 | −39.0629 | −3.7238 |
| Number of | 62 | 62 | 62 | 62 | 62 |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes |
Notes:
Standard errors in parentheses; ***p < 0.01; **p < 0.05; *p < 0.1
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