Remittances, savings, education and growth: system GMM estimation with lagged explanatory variables
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| ΔlnGDPCit–1 | −0.0157** | −0.0163** | −0.0177** | −0.0169** | −0.0181** |
| (0.0103) | (0.0104) | (0.0106) | (0.0106) | (0.0102) | |
| [REMIT/GDP]it–5 | 0.0208*** | 0.0446*** | 0.0128*** | 0.0183*** | 0.0504*** |
| (0.0022) | (0.0029) | (0.0025) | (0.0032) | (0.0045) | |
| [SAV/GDP]it–5 | 0.0032* | 0.0049** | |||
| (0.0017) | (0.0021) | ||||
| LNCOMMODPXit | 0.0400** | 0.0408** | 0.0395** | 0.0396** | 0.0404** |
| (0.0190) | (0.0190) | (0.0186) | (0.0189) | (0.0184) | |
| POLREGIMEit | 0.0227*** | 0.0225*** | 0.0214*** | 0.0212*** | 0.0197*** |
| (0.0060) | (0.0057) | (0.0062) | (0.0055) | (0.0069) | |
| [AID/GDP]it | 0.0034 | 0.0033* | 0.0034 | 0.0034* | 0.0037 |
| (0.0030) | (0.0021) | (0.0030) | (0.0021) | (0.0031) | |
| [EXTDEBT/GDP]it | −0.0392*** | −0.0353*** | −0.0416*** | −0.0352*** | −0.0392*** |
| (0.0095) | (0.0094) | (0.0083) | (0.0097) | (0.0082) | |
| [FINDEVT/GDP]it | −0.0030 | −0.0025* | −0.0044 | −0.0026* | −0.0046* |
| (0.0028) | (0.0016) | (0.0032) | (0.0017) | (0.0028) | |
| INFLit | −0.0077** | −0.0051 | −0.0092*** | −0.0040 | −0.0095*** |
| (0.0036) | (0.0055) | (0.0031) | (0.0054) | (0.0031) | |
| EDUit–5 | 0.0090** | 0.0079* | |||
| (0.0039) | (0.0040) | ||||
| [REMIT*SAV/GDP]it–5 | 0.0012** | ||||
| (0.0005) | |||||
| [REMIT*EDU]it–5 | 0.0026** | ||||
| (0.0010) | |||||
| Constant | −0.144** | −0.143** | −0.140** | −0.136** | −0.147** |
| (0.0655) | (0.0627) | (0.0648) | (0.0624) | (0.0654) | |
| Observations | 966 | 966 | 966 | 966 | 966 |
| No. of countries | 23 | 23 | 23 | 23 | 23 |
| AR(1) p-value | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| AR(2) p-value | 0.432 | 0.452 | 0.475 | 0.497 | 0.468 |
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| ΔlnGDPCit–1 | −0.0157** | −0.0163** | −0.0177** | −0.0169** | −0.0181** |
| (0.0103) | (0.0104) | (0.0106) | (0.0106) | (0.0102) | |
| [REMIT/GDP]it–5 | 0.0208*** | 0.0446*** | 0.0128*** | 0.0183*** | 0.0504*** |
| (0.0022) | (0.0029) | (0.0025) | (0.0032) | (0.0045) | |
| [SAV/GDP]it–5 | 0.0032* | 0.0049** | |||
| (0.0017) | (0.0021) | ||||
| LNCOMMODPXit | 0.0400** | 0.0408** | 0.0395** | 0.0396** | 0.0404** |
| (0.0190) | (0.0190) | (0.0186) | (0.0189) | (0.0184) | |
| POLREGIMEit | 0.0227*** | 0.0225*** | 0.0214*** | 0.0212*** | 0.0197*** |
| (0.0060) | (0.0057) | (0.0062) | (0.0055) | (0.0069) | |
| [AID/GDP]it | 0.0034 | 0.0033* | 0.0034 | 0.0034* | 0.0037 |
| (0.0030) | (0.0021) | (0.0030) | (0.0021) | (0.0031) | |
| [EXTDEBT/GDP]it | −0.0392*** | −0.0353*** | −0.0416*** | −0.0352*** | −0.0392*** |
| (0.0095) | (0.0094) | (0.0083) | (0.0097) | (0.0082) | |
| [FINDEVT/GDP]it | −0.0030 | −0.0025* | −0.0044 | −0.0026* | −0.0046* |
| (0.0028) | (0.0016) | (0.0032) | (0.0017) | (0.0028) | |
| INFLit | −0.0077** | −0.0051 | −0.0092*** | −0.0040 | −0.0095*** |
| (0.0036) | (0.0055) | (0.0031) | (0.0054) | (0.0031) | |
| EDUit–5 | 0.0090** | 0.0079* | |||
| (0.0039) | (0.0040) | ||||
| [REMIT*SAV/GDP]it–5 | 0.0012** | ||||
| (0.0005) | |||||
| [REMIT*EDU]it–5 | 0.0026** | ||||
| (0.0010) | |||||
| Constant | −0.144** | −0.143** | −0.140** | −0.136** | −0.147** |
| (0.0655) | (0.0627) | (0.0648) | (0.0624) | (0.0654) | |
| Observations | 966 | 966 | 966 | 966 | 966 |
| No. of countries | 23 | 23 | 23 | 23 | 23 |
| AR(1) | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| AR(2) | 0.432 | 0.452 | 0.475 | 0.497 | 0.468 |
Note(s): ***, ** and * denote significance at 1, 5 and 10% levels, respectively; values in ( ) are robust standard errors
Source(s): Authors, 2024