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

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Table 2 Financial integration and TFP growth: panel regressions (dependent variable—TFP growth; 5-year panel)

From: Financial integration and total factor productivity: in consideration of different capital controls and foreign direct investment

VariablesFixed effectSystem GMM
(1)(2)(3)(4)(5)(6)
Initial TFP− 0.6947***− 0.6908***− 0.5009***− 0.4548***− 0.4195***− 0.3217***
 (0.0643)(0.0632)(0.0315)(0.1468)(0.1186)(0.0525)
Schooling0.0471***0.0506***0.0172*0.0462*0.03580.0450***
 (0.0159)(0.0156)(0.0104)(0.0274)(0.0274)(0.0131)
Investment0.0079***0.0074***0.0071***0.0123***0.0124***0.0105***
 (0.0018)(0.0017)(0.0009)(0.0040)(0.0037)(0.0022)
Population− 0.0834− 0.0999− 0.1916***− 0.0067− 0.0349− 0.0197
 (0.0679)(0.0666)(0.0297)(0.0537)(0.0545)(0.0242)
Pvt. credit0.00060.00060.00040.00150.0018*0.0008
 (0.0004)(0.0004)(0.0003)(0.0010)(0.0010)(0.0005)
Ka− 0.0790*  − 0.2057***  
 (0.0476)  (0.0642)  
Di − 0.0971*** (0.0335)  − 0.1281** (0.0526) 
FDI Stock  0.0502*** (0.0066)  0.0601*** (0.0121)
Observations272272608272272608
R-squared0.43450.45170.4247   
No. of countries78781097878109
Specification test (p value)    
 Hansen OID   0.8350.4950.372
 AR(2)   0.4750.3950.225
 No. of instruments 434352
  1. 1. The dependent variable is the growth rate of TFP over each 5-year period. 2. All standard errors are robust and reported in parentheses. 3. Statistical significance: *** p < 0.01, ** p < 0.05, * p < 0.1. 4. Intercept not reported. 5. All regressions include time dummies. 6. For variables, see Table 1
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