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Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 4 Pooled Mean Group estimator results (trade deficit is dependent variable)

From: Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Variables

Transport infrastructure

Telecommunication infrastructure

Energy infrastructure

Financial infrastructure

Aggregate infrastructure

Long-run results

 Exchange rate

− 0.8650***

− 0.6846**

− 0.8017***

− 4.1071***

− 3.4787***

 Std. error

0.2376

0.3581

0.2989

0.4929

0.7478

 Human capital

− 0.0136

− 0.1006

− 0.0305

− 1.3230*

0.7265*

 Std. error

0.2848

0.3298

0.3390

0.8826

0.4233

 Per capita GDP

1.3501***

1.3395***

1.3543***

3.0160***

2.7465***

 Std. error

0.1807

0.1735

0.1348

0.3011

0.6561

 Institutional quality

− 0.2859

− 0.6712**

− 0.5844***

0.7035

1.5687***

 Std. error

0.2488

0.3039

0.2682

0.7742

0.3632

 Transport infrastructure

− 0.1078**

    

 Std. error

0.0554

    

 Telecommunication infrastructure

 

− 0.0464

   

 Std. error

 

0.1958

   

 Energy infrastructure

  

− 0.0247

  

 Std. error

  

0.1032

  

 Financial infrastructure

   

0.3237***

 

 Std. error

   

0.0802

 

 Aggregate infrastructure

    

− 0.4292***

 Std. error

    

0.1751

Short-run results

 Exchange rate

2.5839***

2.2407**

2.5519***

2.5864

4.3304

 Std. error

0.1816

0.7701

1.0489

1.6439

2.9042

 Human capital

0.0903

0.3284***

0.0070

− 0.9086

0.9416

 Std. error

1.4475

0.1039

1.3530

1.5923

0.8382

 Per capita GDP

3.3435***

3.3054***

3.5189***

3.0206**

1.3757

 Std. error

1.1054

0.7950

1.0498

1.4649

0.4562

 Institutional quality

− 1.6697

− 1.1406

− 1.4167

− 0.6815

− 1.6054

 Std. error

1.4140

1.1943

1.2166

0.9362

0.6058

 Transport infrastructure

0.2748

    

 Std. error

0.3606

    

 Telecommunication infrastructure

 

− 0.5274**

   

 Std. error

 

0.2918

   

 Energy infrastructure

  

− 0.2832

  

 Std. error

  

0.3510

  

 Financial infrastructure

   

0.0257

 

 Std. error

   

0.0802

 

 Aggregate infrastructure

    

0.0113

 Std. error

    

0.1587

 Constant

− 0.7986***

− 0.5983***

− 0.6599***

0.9704*

− 1.3201

 Std. error

0.1693

0.2918

0.1424

0.6286

1.7275

 ECT(−1)

− 0.436***

− 0.3745***

− 0.4001***

− 0.3108*

− 0.6665**

 Std. error

0.181

0.1707

0.1622

0.2096

0.2864

 Hausman test (P-values)

0.8237

0.987

0.8060

0.2345

0.986

 Pearson CD test (P-values)

0.8372

0.5491

0.4414

0.6660

0.5327

  1. ****, ** and * denote the significance at 1%, 5%, and 10%, respectively. Control variables are the same in each regression. In order to decide between PMG and MG estimator, this study employed Hausman test. Hausman test results confirmed the PMG in all columns. The Pearson CD test presents that there is no problem of cross-sectional dependency
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