Table 2 Local capital spending and industrial development: main results

MAN_(t−1)

0.959*** (0.028)

0.962*** (0.027)

0.959*** (0.026)

0.958*** (0.026)

0.959*** (0.023)

0.961*** (0.023)

LCAP

0.082* (0.043)

0.082** (0.032)

0.083** (0.034)

0.085** (0.036)

0.080*** (0.028)

0.078*** (0.030)

GRDPPC

0.665 (0.822)

0.706 (0.799)

0.727 (0.821)

0.443 (0.660)

0.458 (0.720)

GRDPPC²

− 0.143 (0.134)

− 0.153 (0.132)

− 0.156 (0.136)

− 0.132 (0.112)

− 0.116 (0.119)

TRADE_(t−1)

0.001 (0.001)

0.001 (0.001)

0.000 (0.001)

0.000 (0.001)

INFLATION

0.052** (0.024)

0.060** (0.026)

0.057** (0.025)

FDI_IND

0.110*** (0.034)

DDI_IND

0.057** (0.027)

CONS

0.280 (0.364)

− 0.478 (0.820)

− 0.535 (0.807)

− 0.712 (0.849)

− 0.617 (0.714)

− 0.558 (0.762)

Province FE

Yes

Yes

Yes

Yes

Yes

Yes

Year FE

Yes

Yes

Yes

Yes

Yes

Yes

Observations

544

544

544

544

544

544

Provinces

34

34

34

34

34

34

Instruments

23

25

26

27

28

28

AR-1

0.020

0.019

0.018

0.019

0.020

0.018

AR-2

0.243

0.243

0.241

0.320

0.241

0.365

Hansen (p-value)

0.257

0.227

0.222

0.311

0.337

0.356