Table 4 Difference dynamic panel estimation results (Arellano and Bond 1991 difference GMM approach)

Lag CAB (% of GDP)

0.752***

0.396***

0.602***

0.420***

(0.026)

(0.006)

(0.061)

(0.0007)

Real GDP growth rate

−0.174***

0.627***

−0.049***

0.383***

(0.015)

(0.049)

(0.012)

(0.002)

∆ REER

−0.019***

−0.046***

−0.0005

−0.0007

(0.005)

(0.006)

(0.001)

(0.0006)

Commodity price index

−0.003

0.01**

0.007***

0.009***

(0.004)

(0.004)

(0.002)

(0.0004)

Net foreign assets (% of GDP)

1.502

−8.069***

1.432**

−2.192***

(1.612)

(1.817)

(0.582)

(0.10)

Openness of trade

0.022*

0.096***

0.006**

0.045***

(0.019)

(0.02)

(0.008)

(0.002)

de jure capital openness

−0.321

−2.576

−0.391

−1.558**

(3.352)

(2.443)

(4.472)

(0.313)

Exchange rate stability index

2.171*

−1.171**

−1.177*

−1.767*

(1.810)

(1.821)

(1.672)

(0.206)

Sargan test (p value)

0.181

0.174

0.183

0.212

Hansen J test (p value)

0.213

0.197

0.206

0.251

A–B test AR(1) (p value)

0.042

0.021

0.001

0.003

A–B test AR(2) (p value)

0.383

0.382

0.390

0.377

Observations

837

992

1457

3286

Number of countries

27

32

47

106