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 8 Fully modified OLS 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

Variables	Transport infrastructure	Telecommunication infrastructure	Energy infrastructure	Financial infrastructure	Aggregate infrastructure
Long-run results
Exchange RATE	− 0.840***	− 0.684***	− 0.843***	− 0.979***	− 0.418**
Std. error	0.176	0.190	0.168	0.188	0.191
Human capital	− 1.187***	− 1.253***	− 1.106***	− 0.999***	− 1.215***
Std. error	0.165	0.176	0.166	0.172	0.158
Per capita GDP	2.061***	2.264***	2.089***	2.181***	1.918***
Std. error	0.105	0.118	0.100	0.109	0.107
Institutional quality	1.140***	0.577**	0.963***	1.022***	0.832***
Std. error	0.273	0.290	0.249	0.272	0.252
Transport infrastructure	− 0.163***
Std. error	0.068
Telecommunication infrastructure		− 0.484***
Std. error		0.133
Energy infrastructure			− 0.009
Std. error			0.059
Financial infrastructure				− 0.161***
Std. error				0.033
Aggregate infrastructure					− 0.330***
Std. error					0.067
ADJ. R²	0.83	0.81	0.81	0.83	0.82
Dynamic ordinary least square
Exchange rate	− 1.225**	− 1.075**	− 0.015	− 0.595	− 1.469
Std. error	0.668	0.663	0.575	0.538	0.600
Human capital	− 0.951**	− 1.497***	− 0.869**	− 0.841**	− 1.337
Std. error	0.615	0.424	0.458	0.415	0.386
Per capita GDP	1.461***	1.872***	1.972***	1.647***	1.232
Std. error	0.303	0.314	0.248	0.230	0.304
Institutional quality	− 0.445	− 0.139	− 0.001	− 0.204	− 0.374
Std. error	0.927	0.663	0.724	0.621	0.599
Transport infrastructure	− 0.415**
Std. error	0.113
Telecommunication infrastructure		− 0.363**
Std. error		0.144
Energy infrastructure			− 0.149
Std. error			0.128
Financial infrastructure				0.181***
Std. error				0.074
Aggregate infrastructure					− 0.461***
Std. error					0.469
ADJ. R²	0.86	0.84	0.86	0.87	0.89

****, ** and * denote the significance at 1%, 5%, and 10%, respectively

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