Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Rehman, Faheem Ur; Noman, Abul Ala; Ding, Yibing

doi:10.1186/s40008-020-0183-x

Journal of Economic Structures

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

Table 3 Pooled Mean Group method results (export is dependent variable)

From: Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Variables	Transport infrastructure	Telecommunication infrastructure	Energy infrastructure	Financial infrastructure	Aggregate infrastructure
Long-run results
Exchange rate	− 3.0573***	− 0.5454***	− 0.1234*	− 1.4267***	− 0.7673**
Std. error	0.6979	0.0269	0.0994	0.3677	0.3298
Human capital	0.1536	1.5653***	0.1917*	0.1418	0.1670
Std. error	0.3075***	0.1994	0.1175	0.5383	0.4494***
Per capita GDP	1.7352	0.8590***	0.5565***	1.4300***	1.0565
Std. error	0.2093	0.013	0.0386	0.2013	0.2349
Institutional quality	1.6017***	0.0531***	0.1887*	0.9098***	0.4234***
Std. error	0.5920	0.0219	0.1171	0.1538	0.0513
Transport infrastructure	1.3117***
Std. error	0.4232
Telecommunication infrastructure		0.4720***
Std. error		0.0155
Energy infrastructure			0.7733***
Std. error			0.2598
Financial infrastructure				0.2549***
Std. error				0.0628
Aggregate infrastructure					0.3267***
Std. error					0.0878
Short-run results
Exchange rate	− 0.5190	− 0.0306	− 0.1256	− 0.4713	− 0.5334
Std. error	0.4602	0.1472	0.2514	0.2414	0.4803
Human capital	0.0592	0.9343	0.2223	0.1845	0.1577
Std. error	0.1673	0.8129	0.4239	0.1946	0.2007
Per capita GDP	2.1747*	0.3917	0.9911***	1.0156	0.9119***
Std. error	1.2822	0.3526	0.1564	0.1227	0.3089
Institutional quality	0.1410	0.1099	0.0890	0.0864	0.3214**
Std. error	0.4021	0.0770	0.2367	0.1373	0.1544
Transport infrastructure	0.0773
Std. error	0.1899
Telecommunication infrastructure		0.2901
Std. error		0.1239
Energy infrastructure			0.0853
Std. error			0.3017
Financial infrastructure				0.0494
Std. error				0.0509
Aggregate infrastructure					0.0874**
Std. error					0.0489
Constant	− 0.2699	1.7603	0.9300	− 0.6134	− 0.9540
Std. error	0.6757	1.6136	0.5594	0.7883	0.1231
ECT₍₋₁₎	− 0.2954*	− 0.3867**	− 0.2478**	− 0.1220**	− 0.2429***
Std. error	0.1496	0.2183	0.1421	0.0671	0.0683
Hausman test (P-values)	0.4886	0.9995	0.2896	0.0063	0.4585
Pearson CD test (P-values)	0.2679	0.4855	0.2749	0.3271	0.6453

****, ** and * denote the significance at 1%, 5%, and 10%, respectively. Control variables are the same in each regression. In order to decide between PMG and MG estimator, this study employed Hausman test. Hausman test results confirmed the PMG in all columns. The Pearson CD test presents that there is no problem of cross-sectional dependency

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