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

Table 3 Local capital spending and industrial development: interaction terms

From: The legacy of the reformasi: the role of local government spending on industrial development in a decentralized Indonesia

Variables

All

Non-SAR

Resource rich

Non-imputation

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

MAN(t−1)

0.956*** (0.023)

0.961*** (0.023)

0.961*** (0.020)

0.964*** (0.022)

1.046*** (0.011)

1.042*** (0.012)

0.956*** (0.022)

0.964*** (0.022)

LCAP

0.066** (0.029)

0.057 (0.039)

0.081*** (0.029)

0.070* (0.040)

0.106** (0.047)

0.082** (0.041)

0.070* (0.040)

0.084 (0.058)

FDIIND

0.103*** (0.039)

 

0.089** (0.036)

 

0.216** (0.107)

 

0.109** (0.043)

 

DDIIND

 

0.041 (0.030)

 

0.030 (0.034)

 

0.090 (0.073)

 

0.033 (0.029)

LCAP * FDIIND

0.003 (0.006)

 

0.004 (0.005)

 

− 0.021* (0.013)

 

0.004 (0.007)

 

LCAP * DDIIND

 

0.006 (0.008)

 

0.006 (0.007)

 

− 0.005 (0.006)

 

0.002 (0.010)

CONS

− 0.654 (0.721)

− 0.554 (0.764)

− 0.813 (0.783)

− 0.809 (0.879)

3.934 (4.825)

− 0.013 (5.070)

− 0.624 (0.750)

− 0.541 (0.804)

Control Var.

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Province FE

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Year FE

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Observations

544

544

464

464

96

96

512

512

Provinces

34

34

29

29

6

6

32

32

Instruments

29

29

29

29

29

29

29

29

AR-1

0.020

0.018

0.032

0.031

0.167

0.169

0.024

0.021

AR-2

0.254

0.390

0.229

0.373

0.954

0.806

0.189

0.292

Hansen (p-value)

0.341

0.358

0.385

0.439

1.000

1.000

0.386

0.409

  1. Source: author
  2. AR-1 and AR-2 denotes Arellano–Bond test with p-values results are reported. They are the necessary diagnostics for dynamic panel data estimation, i.e., GMM
  3. Hansen J-test calculates overidentifying restrictions that occurs due to increasing number of instruments. P-value is reported
  4. Robust standard error in parentheses, *p < 0.1, **p < 0.05, ***p < 0.01