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Journal of Economic Structures

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

Table 5 Robustness test

From: Does the country’s political and economic risks trigger risk-taking behavior in the banking sector: a new insight from regional study

Variables

Sub-Saharan Africa

Middle East and North Africa

Europe and Central Asia

Latin America and Caribbean

South and East Asia and Pacific

OECD high income

All investigated countries

Lag [σ(ROA)]

0.854***

0.808***

0.865***

0.816***

0.831***

0.836***

0.832***

(3.92)

(2.61)

(3.31)

(4.54)

(4.53)

(4.21)

(5.32)

C/TA

− 0.001***

− 0.001

− 0.001*

− 0.004

− 0.002*

− 0.001***

− 0.004**

(− 4.87)

(− 1.22)

(− 1.68)

(− 1.24)

(− 1.73)

(− 2.69)

(− 2.07)

NPL/GL

0.005***

0.004**

0.007**

0.001**

0.001

0.002***

0.001**

(4.27)

(2.05)

(2.10)

(2.06)

(0.86)

(3.20)

(2.05)

OC/TA

0.023***

0.005

0.003**

0.026***

0.004*

0.008***

0.015**

(3.53)

(1.09)

(2.03)

(4.35)

(1.86)

(4.67)

(2.12)

LI

− 0.002*

− 0.007**

− 0.004*

− 0.002

− 0.004

− 0.007

− 0.002***

(− 1.68)

(− 2.13)

(− 1.67)

(− 1.31)

(0.94)

(− 1.58)

(− 2.73)

NI/TI

− 0.013**

− 0.002

− 0.021

− 0.003**

− 0.001*

− 0.006***

− 0.011***

(− 2.09)

(− 0.77)

(− 1.39)

(− 2.04)

(− 1.68)

(− 2.61)

(− 5.37)

DC

0.002

0.006

0.003**

0.002*

0.005**

0.012***

0.002***

(1.21)

(0.79)

(2.04)

(1.89)

(2.06)

(3.63)

(4.19)

DI

0.033

0.107**

0.046*

0.131***

0.017*

0.036**

0.053*

(0.69)

(1.99)

(1.73)

(2.77)

(1.82)

(2.13)

(1.73)

PS

− 0.023**

− 0.053**

− 0.054*

− 0.068*

− 0.048*

− 0.097**

− 0.006***

(− 2.21)

(− 2.02)

(− 1.67)

(− 1.83)

(− 1.84)

(− 2.23)

(− 3.17)

ERI

− 0.011***

− 0.016***

− 0.015**

− 0.013**

− 0.015*

− 0.018***

− 0.018***

(− 4.21)

(− 3.40)

(− 2.04)

(− 2.16)

(− 1.86)

(− 3.44)

(− 4.64)

Constant

0.687***

0.282*

0.079

0.597**

0.526

− 0.976

− 0.191

(4.60)

(1.71)

(1.18)

(2.50)

(1.42)

(− 1.09)

(− 1.06)

Time dummy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Hansen-test

(0.545)

(0.457)

(0.465)

(0.644)

(0.442)

(0.405)

(0.441)

Sargan-test

(0.433)

(0.349)

(0.339)

(0.511)

(0.451)

(0.522)

(0.433)

AR (2)

(0.524)

(0.534)

(0.437)

(0.447)

(0.536)

(0.446)

(0.527)

  1. See Table 4. C/TA is capital regulation; OC/TA is inefficiency
  2. PS is political stability
  3. The symbols *, ** and *** indicate statistical significance at the 10%, 5% and 1% levels, respectively
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