Table 5 Results for the threshold effect...

Table 5

Results for the threshold effect of FDI on trade balance from the smooth threshold regression model

Variable	Coefficient	Std. error	t-Statistic	Prob.
Threshold variables (linear part)
C	46.269	18.166	2.547	0.013**
FDI	−1.416	0.656	−2.157	0.034**
Threshold variables (nonlinear part)
C	−37.781	17.541	−2.154	0.034**
FDI	1.411	0.658	2.143	0.035**
Non-threshold variables
REER	−0.305	0.039	−7.765	0.000***
AGR	0.271	0.092	2.938	0.004***
INF	−0.084	0.027	−3.032	0.003***
GEX	0.022	0.019	1.113	0.269
Slopes
SLOPE	0.938	0.535	1.753	0.084*
Thresholds
THRESHOLD	7.825	0.753	95.385	0.000***
R-squared	0.764	Akaike info criterion		3.687
Adjusted R-squared	0.736	Schwarz criterion		3.968
F-statistic	28.056	Durbin-Watson stat		1.984
Prob (F-statistic)	0.000

Variable	Coefficient	Std. error	t-Statistic	Prob.
Threshold variables (linear part)
C	46.269	18.166	2.547	0.013**
FDI	−1.416	0.656	−2.157	0.034**
Threshold variables (nonlinear part)
C	−37.781	17.541	−2.154	0.034**
FDI	1.411	0.658	2.143	0.035**
Non-threshold variables
REER	−0.305	0.039	−7.765	0.000***
AGR	0.271	0.092	2.938	0.004***
INF	−0.084	0.027	−3.032	0.003***
GEX	0.022	0.019	1.113	0.269
Slopes
SLOPE	0.938	0.535	1.753	0.084*
Thresholds
THRESHOLD	7.825	0.753	95.385	0.000***
R-squared	0.764	Akaike info criterion		3.687
Adjusted R-squared	0.736	Schwarz criterion		3.968
F-statistic	28.056	Durbin-Watson stat		1.984
Prob (F-statistic)	0.000

Note(s): Dependent variable: trade balance. *, **, and *** indicate the rejection of the null hypothesis of no effect at 10%, 5%, and 1% significance levels

Source(s): Produced from BoG, IMF and WDI data, 2024

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