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

Table 4 Infrastructure stocks and economic growth: panel regression analysis

From: Mexico’s economic infrastructure: international benchmark and its impact on growth

  Endogenous instruments Exogenous instrument: urban population
(1) (2) (3) (4) (5) (6)
GMM system 5 years, t = 11 GMM system 6 years, t = 9 GMM system 10 years, t = 5 GMM system 5 years, t = 11 GMM system 6 years, t = 9 GMM system 10 years, t = 5
Lag output per capita (logs) − 0.116*** − 0.188*** − 0.394*** − 0.0821*** − 0.178*** − 0.381***
(0.000) (0.000) (0.000) (0.000) (0.000) (0.000)
Infrastructure index 0.0862*** 0.102*** 0.250*** 0.0804*** 0.117*** 0.246***
(0.000) (0.000) (0.000) (0.000) (0.000) (0.000)
Human capital − 0.0204 0.0221 0.0773 − 0.0255 0.0188* 0.0817
  (0.114) (0.135) (0.519) (0.051) (0.046) (0.483)
Financial depth 0.0621*** 0.0909*** 0.238*** 0.0627*** 0.0911*** 0.230***
  (0.000) (0.000) (0.001) (0.000) (0.000) (0.000)
Trade openness − 0.165*** − 0.107*** − 0.410* − 0.242*** − 0.0640* − 0.381*
(0.000) (0.000) (0.031) (0.000) (0.015) (0.032)
Government burden − 0.0701* − 0.0726** − 0.0761 − 0.105** − 0.0621*** − 0.102
(0.017) (0.002) (0.585) (0.001) (0.000) (0.432)
Inflation 0.0000133 0.000284*** 0.0000181 − 0.0000143 0.000304*** 0.000104
  (0.448) (0.000) (0.974) (0.511) (0.000) (0.833)
Terms of trade shocks 0.0859*** 0.142*** 0.278 0.0721* 0.161*** 0.330
(0.000) (0.000) (0.293) (0.023) (0.000) (0.101)
Governance 0.0191*** 0.0222*** -0.0180 0.0105* 0.00927* -0.0192
  (0.000) (0.000) (0.461) (0.029) (0.026) (0.426)
Observations 500 402 247 500 402 247
Groups 70 70 70 70 70 70
No. instruments 90 68 31 110 80 32
Specification tests
Hansen test 0.888 0.298 0.425 0.997 0.624 0.507
First-order correlation 0.180 0.030 0.211 0.146 0.035 0.207
Second-order correlation 0.022 0.127 0.065 0.022 0.147 0.060
  1. Using different estimation techniques and sample periods
  2. Dependent variable: growth of GDP per capita
  3. Sample of 96 countries, 1960–2014, different year averages
  4. P values in parentheses
  5. p < 0.05, ** p < 0.01, *** p < 0.001