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

Table 2 Political governance, capital flight and industrialisation

From: Governance, capital flight and industrialisation in Africa

 

Dependent variable: industrialisation

Political stability

Voice and accountability

Political governance

Industrialisation (− 1)

0.875***

0.844***

0.878***

0.910***

0.870***

0.927***

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

Constant

2.395

9.548***

8.943

4.925

1.771

7.986***

(0.370)

(0.000)

(0.121)

(0.122)

(0.423)

(0.000)

Political stability (PS)

1.578

5.158***

(0.315)

(0.000)

    

Voice and accountability (VA)

8.995*

6.021

  

(0.095)

(0.114)

  

Political governance (Polgov)

1.632

6.684***

    

(0.243)

(0.000)

Capital flight (− 1)(CapFlight)

− 0.064

− 0.770***

− 0.716

− 0.384

− 0.046

− 0.773***

(0.776)

(0.002)

(0.231)

(0.261)

(0.844)

(0.000)

PolS × CapFlight

− 0.164

− 0.605***

(0.274)

(0.000)

    

VA × CapFlight

− 0.941*

− 0.720*

  

(0.051)

(0.065)

  

Polgov × CapFlight

− 0.182

− 0.762***

    

(0.203)

(0.000)

Trade

− 0.001

0.001

− 0.004

0.004

0.007

0.008

(0.895)

(0.847)

(0.670)

(0.215)

(0.561)

(0.286)

Domestic investment

− 0.020**

− 0.026***

− 0.019

− 0.013**

− 0.020

− 0.017**

(0.020)

(0.005)

(0.186)

(0.022)

(0.107)

(0.047)

Population

− 0.020***

− 0.010**

− 0.009*

 

(0.000)

 

(0.040)

 

(0.052)

Bank efficiency

− 0.029***

− 0.031***

− 0.027***

 

(0.000)

 

(0.000)

 

(0.000)

Private credit

0.119***

0.086***

0.124***

 

(0.000)

 

(0.000)

 

(0.000)

Net effects of capital flight

na

− 0.376

na

na

na

− 0.698

AR(1)

(0.270)

(0.087)

(0.268)

(0.080)

(0.268)

(0.076)

AR(2)

(0.292)

(0.167)

(0.291)

(0.274)

(0.290)

(0.167)

Sargan OIR

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.001)

Hansen OIR

(0.501)

(0.487)

(0.308)

(0.558)

(0.475)

(0.359)

DHT for instruments

 (a) Instruments in levels

(0.251)

(0.771)

(0.782)

(0.478)

(0.472)

(0.975)

 H excluding group

(0.648)

(0.290)

(0.148)

(0.539)

(0.433)

(0.100)

Dif (null, H = exogenous)

 (b) IV (years, eq (diff))

(0.535)

(0.166)

(0.172)

(0.412)

(0.567)

(0.210)

 H excluding group

(0.331)

(1.000)

(0.884)

(0.914)

(0.245)

(1.000)

Dif (null, H = exogenous)

 Fisher

437.17***

1542.15***

123.47***

1126.33***

335.04***

1092.53***

 Instruments

26

38

26

38

26

38

 Countries

35

35

35

35

35

35

 Observations

323

307

323

307

323

307

  1. *,**,***: significance levels of 10%, 5% and 1% respectively. DHT: Difference in Hansen Test for Exogeneity of Instruments’ Subsets. Dif difference, OIR over-identifying restrictions test. The italicised values have a twofold meaning: (1) The significance of estimated coefficients and the  Fisher statistics. (2) The failure to reject the null hypotheses of: (a) no autocorrelation in the AR(1) and AR(2) tests and; (b) the validity of the instruments in the Sargan and Hansen OIR tests. The mean values of political stability, voice and accountability and political governance are respectively − 0.650, − 0.705 and − 0.098. It is important to note that whereas the sample consists of 36 African countries, 35 countries may appear in the regression output because of issues in degrees of freedom associated with some variables used in the conditioning information set. na: not applicable because at least one estimated coefficient needed for the computation of net effects is not significant