Table 6 Robustness checks (difference dynamic panel estimation)

Lag CAB (% of GDP)

0.684***

0.384***

0.615***

0.404***

(0.039)

(0.004)

(0.031)

(0.0009)

Real GDP growth rate

−0.156***

0.661***

−0.0389***

0.366***

(0.023)

(0.035)

(0.009)

(0.002)

∆ REER

−0.0157***

−0.059***

−0.0008

−0.003***

(0.004)

(0.003)

(0.001)

(0.0006)

Commodity price index

−0.003

0.0005

0.006***

0.002***

(0.004)

(0.004)

(0.001)

(0.0004)

Openness of trade

0.007

0.164***

0.002

0.073***

(0.011)

(0.038)

(0.006)

(0.001)

de facto capital openness

−0.0002

−0.004***

−0.004**

−0.007**

(0.0004)

(0.0003)

(0.001)

(0.0002)

Exchange rate stability index

6.611**

−0.418

−0.035

−2.405***

(3.073)

(1.917)

(1.196)

(0.168)

Asian crisis dummy

12.25

−22.37*

–

0.855

(7.649)

(12.63)

–

(1.114)

Sargan test (p value)

0.121

0.191

0.214

0.192

Hansen J test (p value)

0.172

0.178

0.227

0.219

A–B test AR(1) (p value)

0.032

0.041

0.004

0.001

A–B test AR(2) (p value)

0.483

0.482

0.490

0.477

Observations

837

992

1457

3286

Number of countries

27

32

47

106