Journal of Economic Structures

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
Variables	(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. 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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