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

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

Variables

Fixed effect

System 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)

Schooling

0.0471***

0.0506***

0.0172*

0.0462*

0.0358

0.0450***

 

(0.0159)

(0.0156)

(0.0104)

(0.0274)

(0.0274)

(0.0131)

Investment

0.0079***

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. credit

0.0006

0.0006

0.0004

0.0015

0.0018*

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)

Observations

272

272

608

272

272

608

R-squared

0.4345

0.4517

0.4247

   

No. of countries

78

78

109

78

78

109

Specification test (p value)

    

 Hansen OID

   

0.835

0.495

0.372

 AR(2)

   

0.475

0.395

0.225

 No. of instruments

 

43

43

52

  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