Table 1 Estimation outcomes of the EKC...

Table 1

Estimation outcomes of the EKC hypothesis with one and two-step SYS-GMM

Regressors	One-step SYS-GMM				Two-step SYS-GMM
Regressors	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
CO_2t-1	0.9326^*** (0.0525)	0.9486^*** (0.0440)	0.9306^*** (0.0527)	0.9311^*** (0.0541)	0.9024^*** (0.0636)	0.9294^*** (0.0520)	0.8978^*** (0.0658)	0.9055^*** (0.0622)
Y	1.3924 (0.9737)	2.4218^*** (0.8628)	1.1916 (1.0671)	1.5027^* (0.8299)	1.7643^** (0.8455)	2.3226^*** (0.6219)	1.5732^* (0.9654)	1.8072^*** (0.6711)
Y²	−0.0804 (0.0626)	−0.1430^*** (0.0528)	−0.068 (0.0681)	−0.0832 (0.0540)	−0.1031^* (0.0562)	−0.1384^*** (0.0377)	−0.0909 0.0638	−0.1035^** (0.0447)
REC	−0.0022 (0.0025)	−0.0022 (0.0024)	−0.0020 (0.0022)	−0.0030 (0.0028)	−0.0023 (0.0025)	−0.0022 (0.0024)	−0.0022 (0.0021)	−0.0029 (0.0027)
FDI	0.0069 (0.0047)	0.0073 (0.0046)	0.0070 (0.0048)	0.0076 (0.0047)	0.0078^** (0.0038)	0.0069^* (0.0037)	0.0081^** (0.0040)	0.0077^* (0.0040)
EIA		0.0051^* (0.0032)				0.0039 (0.0029)
EII			0.0034 (0.0062)				0.0030 (0.0063)
EIS				−0.0068^* (0.0042)				−0.0051 (0.0037)
TD	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
F (18, 114)	2432.14	2674.18	2698.75	2372.37	1328.92	1333.18	1345.62	1095.32
Prob > F	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
AR(1)	0.0030	0.0020	0.003	0.002	0.0030	0.0030	0.004	0.003
AR(2)	0.8490	0.8650	0.846	0.852	0.8590	0.8720	0.854	0.86
Hansen	0.1190	0.1530	0.113	0.151	0.1190	0.1530	0.113	0.151
Obs	1,610	1,610	1,610	1,610	1,610	1,610	1,610	1,610
Instrument	26	28	27	29	26	28	27	29

Regressors	One-step SYS-GMM				Two-step SYS-GMM
Regressors	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
CO_2t-1	0.9326^*** (0.0525)	0.9486^*** (0.0440)	0.9306^*** (0.0527)	0.9311^*** (0.0541)	0.9024^*** (0.0636)	0.9294^*** (0.0520)	0.8978^*** (0.0658)	0.9055^*** (0.0622)
Y	1.3924 (0.9737)	2.4218^*** (0.8628)	1.1916 (1.0671)	1.5027^* (0.8299)	1.7643^** (0.8455)	2.3226^*** (0.6219)	1.5732^* (0.9654)	1.8072^*** (0.6711)
Y²	−0.0804 (0.0626)	−0.1430^*** (0.0528)	−0.068 (0.0681)	−0.0832 (0.0540)	−0.1031^* (0.0562)	−0.1384^*** (0.0377)	−0.0909 0.0638	−0.1035^** (0.0447)
REC	−0.0022 (0.0025)	−0.0022 (0.0024)	−0.0020 (0.0022)	−0.0030 (0.0028)	−0.0023 (0.0025)	−0.0022 (0.0024)	−0.0022 (0.0021)	−0.0029 (0.0027)
FDI	0.0069 (0.0047)	0.0073 (0.0046)	0.0070 (0.0048)	0.0076 (0.0047)	0.0078^** (0.0038)	0.0069^* (0.0037)	0.0081^** (0.0040)	0.0077^* (0.0040)
EIA		0.0051^* (0.0032)				0.0039 (0.0029)
EII			0.0034 (0.0062)				0.0030 (0.0063)
EIS				−0.0068^* (0.0042)				−0.0051 (0.0037)
TD	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
F (18, 114)	2432.14	2674.18	2698.75	2372.37	1328.92	1333.18	1345.62	1095.32
Prob > F	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
AR(1)	0.0030	0.0020	0.003	0.002	0.0030	0.0030	0.004	0.003
AR(2)	0.8490	0.8650	0.846	0.852	0.8590	0.8720	0.854	0.86
Hansen	0.1190	0.1530	0.113	0.151	0.1190	0.1530	0.113	0.151
Obs	1,610	1,610	1,610	1,610	1,610	1,610	1,610	1,610
Instrument	26	28	27	29	26	28	27	29

Note(s): Robust standard errors are in parenthesis

Source(s): Author's calculation

Instruments and Lags: We used (Y, REC, FDI); (Y, REC, FDI, EIA); (Y, REC, FDI, EII) and (Y, REC, FDI, EIA, EII, EIS) as instruments with lags 2 to 3 in the estimated model (1–4) and (5–8) respectively

Asterisks (***, ** and *) denotes the significance level at 1%, 5 and 10% respectively

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