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

Table 7 Robustness checks (system dynamic panel estimation)

From: Determinants of current account imbalance in the global economy: a dynamic panel analysis

 

(1)

(2)

(3)

(4)

Developed

Emerging

Developing

Full sample

Lag CAB (% of GDP)

0.798***

0.400***

0.639***

0.405***

(0.031)

(0.007)

(0.028)

(0.0006)

Real GDP growth rate

−0.215***

0.798***

−0.028**

0.458***

(0.018)

(0.033)

(0.012)

(0.004)

∆ REER

−0.014***

−0.091***

−0.004**

−0.008***

(0.004)

(0.011)

(0.002)

(0.001)

Commodity price index

−0.005

0.009***

0.007***

−0.004***

(0.003)

(0.003)

(0.001)

(0.0005)

Openness of trade

−0.004

0.042***

−0.003

0.084***

(0.025)

(0.008)

(0.005)

(0.002)

de facto capital openness

0.0001

−0.002***

−0.004***

−0.006***

(0.0006)

(0.0001)

(0.001)

(0.0001)

Exchange rate stability index

1.081

−4.948**

0.304

−2.937***

(1.683)

(1.925)

(1.034)

(0.135)

Asian crisis dummy

10.54*

−2.253*

–

0.684

(6.071)

(18.74)

–

(0.612)

Sargan test (p value)

0.193

0.214

0.197

0.221

Hansen J test (p value)

0.172

0.178

0.227

0.219

Diff-in-Hansen test (p value)

0.138

0.163

0.211

0.194

A–B test AR(1) (p value)

0.024

0.011

0.007

0.004

A–B test AR(2) (p value)

0.583

0.582

0.590

0.577

Observations

837

992

1457

3286

Number of countries

27

32

47

106

  1. Dependent variable is current account balance (% of GDP)
  2. Standard errors in parentheses
  3. *** Significant at 1 %; ** significant at 5 %; * significant at 10 %