Table 2 The FGLS outputs Model (1) Model...

Table 2

The FGLS outputs

	Model (1)	Model (2)	Model (3)	Model (4)	Model (5)
bm	0.070**	0.077***	0.082**	0.073*	0.072*
bm	(0.040)	(0.038)	(0.040)	(0.044)	(0.043)
Open	−0.008	−0.0191	−0.011	−0.002	0.136
Open	(0.031)	(0.032)	(0.032)	(0.032)	(0.031)
rgdppc	−0.037*	−0.050**	−0.054**	−0.064***	−0.074***
rgdppc	(0.021)	(0.022)	(0.022)	(0.022)	(0.021)
lagged Inf	−0.0004	−0.0003	−0.0004	−0.0006	−0.0007
lagged Inf	(0.0004)	(0.0003)	(0.0004)	(0.0004)	(0.0005)
Polity5		0.006***	0.005**	0.004**	0.004*
Polity5		(0.002)	(0.002)	(0.002)	(0.002)
legalori_uk	−0.332***	−0.279**	−0.281***	−0.250***	−0.234***
legalori_uk	(0.086)	(0.089)	(0.086)	(0.083)	(0.072)
legalori_fr	0.177*	0.212**	0.234***	0.282***	0.312***
legalori_fr	(0.100)	(0.097)	(0.094)	(0.092)	(0.080)
limfgdp			−0.328	−0.454	−0.502
limfgdp			(0.502)	(0.687)	(0.705)
gov				0.129***	0.177***
gov				(0.044)	(0.045)
era					0.001
era					(0.004)
Constant	−0.699***	−0.629***	−0.643***	−0.893***	−1.023***
Constant	(0.211)	(0.208)	(0.214)	(0.224)	(0.207)
Observations	334	334	334	329	329
Number of countries	17	17	17	17	17
Time effect dummies	Included	Included	Included	Included	Included

	Model (1)	Model (2)	Model (3)	Model (4)	Model (5)
bm	0.070**	0.077***	0.082**	0.073*	0.072*
bm	(0.040)	(0.038)	(0.040)	(0.044)	(0.043)
Open	−0.008	−0.0191	−0.011	−0.002	0.136
Open	(0.031)	(0.032)	(0.032)	(0.032)	(0.031)
rgdppc	−0.037*	−0.050**	−0.054**	−0.064***	−0.074***
rgdppc	(0.021)	(0.022)	(0.022)	(0.022)	(0.021)
lagged Inf	−0.0004	−0.0003	−0.0004	−0.0006	−0.0007
lagged Inf	(0.0004)	(0.0003)	(0.0004)	(0.0004)	(0.0005)
Polity5		0.006***	0.005**	0.004**	0.004*
Polity5		(0.002)	(0.002)	(0.002)	(0.002)
legalori_uk	−0.332***	−0.279**	−0.281***	−0.250***	−0.234***
legalori_uk	(0.086)	(0.089)	(0.086)	(0.083)	(0.072)
legalori_fr	0.177*	0.212**	0.234***	0.282***	0.312***
legalori_fr	(0.100)	(0.097)	(0.094)	(0.092)	(0.080)
limfgdp			−0.328	−0.454	−0.502
limfgdp			(0.502)	(0.687)	(0.705)
gov				0.129***	0.177***
gov				(0.044)	(0.045)
era					0.001
era					(0.004)
Constant	−0.699***	−0.629***	−0.643***	−0.893***	−1.023***
Constant	(0.211)	(0.208)	(0.214)	(0.224)	(0.207)
Observations	334	334	334	329	329
Number of countries	17	17	17	17	17
Time effect dummies	Included	Included	Included	Included	Included

Note(s): ***, ** and * indicate the statistical significance at 1, 5 and 10% significance level, respectively. The value in the parentheses is the standard error. ldwvau represents the de jure CBI index, bm represents board money ratio as a percentage of GDP, open represents trade openness (the sum of export and import as a percentage of GDP), rgdppc represents real GDP per capita, inf represents lagged inflation rate, legalori_uk represents the dummy variables indicate whether a legal system is originated from the UK, legalori_fr represents the dummy variables indicate whether a legal system is originated from France, imfgdp represents the use of IMF credit as a percentage of GDP, polity5 represents combined polity score. gov represents the government expenditure as a percentage of GDP. Lastly, era indicates the exchange rate agreement

dependent variable: unweighted de jure CBI; financial development: the ratio of broad money to GDP

Source(s): Authors' own work

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