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

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Table 4 Pooled Mean Group estimator results (trade deficit is dependent variable)

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

VariablesTransport infrastructureTelecommunication infrastructureEnergy infrastructureFinancial infrastructureAggregate infrastructure
Long-run results
 Exchange rate− 0.8650***− 0.6846**− 0.8017***− 4.1071***− 3.4787***
 Std. error0.23760.35810.29890.49290.7478
 Human capital− 0.0136− 0.1006− 0.0305− 1.3230*0.7265*
 Std. error0.28480.32980.33900.88260.4233
 Per capita GDP1.3501***1.3395***1.3543***3.0160***2.7465***
 Std. error0.18070.17350.13480.30110.6561
 Institutional quality− 0.2859− 0.6712**− 0.5844***0.70351.5687***
 Std. error0.24880.30390.26820.77420.3632
 Transport infrastructure− 0.1078**    
 Std. error0.0554    
 Telecommunication infrastructure − 0.0464   
 Std. error 0.1958   
 Energy infrastructure  − 0.0247  
 Std. error  0.1032  
 Financial infrastructure   0.3237*** 
 Std. error   0.0802 
 Aggregate infrastructure    − 0.4292***
 Std. error    0.1751
Short-run results
 Exchange rate2.5839***2.2407**2.5519***2.58644.3304
 Std. error0.18160.77011.04891.64392.9042
 Human capital0.09030.3284***0.0070− 0.90860.9416
 Std. error1.44750.10391.35301.59230.8382
 Per capita GDP3.3435***3.3054***3.5189***3.0206**1.3757
 Std. error1.10540.79501.04981.46490.4562
 Institutional quality− 1.6697− 1.1406− 1.4167− 0.6815− 1.6054
 Std. error1.41401.19431.21660.93620.6058
 Transport infrastructure0.2748    
 Std. error0.3606    
 Telecommunication infrastructure − 0.5274**   
 Std. error 0.2918   
 Energy infrastructure  − 0.2832  
 Std. error  0.3510  
 Financial infrastructure   0.0257 
 Std. error   0.0802 
 Aggregate infrastructure    0.0113
 Std. error    0.1587
 Constant− 0.7986***− 0.5983***− 0.6599***0.9704*− 1.3201
 Std. error0.16930.29180.14240.62861.7275
 ECT(−1)− 0.436***− 0.3745***− 0.4001***− 0.3108*− 0.6665**
 Std. error0.1810.17070.16220.20960.2864
 Hausman test (P-values)0.82370.9870.80600.23450.986
 Pearson CD test (P-values)0.83720.54910.44140.66600.5327
  1. ****, ** 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