Table 6 Sensitivity analysis for the...

Table 6

Sensitivity analysis for the threshold effect of FDI on trade balance from the discrete threshold regression model

Variable	Coefficient	Std. error	t-Statistic	Prob.
FDI < 7.171
FDI	−0.061	0.164	−0.371	0.713
7.171 ≤ FDI
FDI	3.435	0.785	4.375	0.000***
Non-threshold variables
REER	−0.389	0.074	−5.257	0.000***
AG	0.137	0.031	4.419	0.000***
INF	−0.158	0.059	−2.669	0.012**
GEX	0.005	0.008	0.605	0.549
R-squared	0.803	Akaike info criterion		2.804
Adjusted R-squared	0.773	Schwarz criterion		3.057
S.E. of regression	0.918	Durbin-Watson stat		1.596

Variable	Coefficient	Std. error	t-Statistic	Prob.
FDI < 7.171
FDI	−0.061	0.164	−0.371	0.713
7.171 ≤ FDI
FDI	3.435	0.785	4.375	0.000***
Non-threshold variables
REER	−0.389	0.074	−5.257	0.000***
AG	0.137	0.031	4.419	0.000***
INF	−0.158	0.059	−2.669	0.012**
GEX	0.005	0.008	0.605	0.549
R-squared	0.803	Akaike info criterion		2.804
Adjusted R-squared	0.773	Schwarz criterion		3.057
S.E. of regression	0.918	Durbin-Watson stat		1.596

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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