Table 6 Estimation results of base line investment models
Variables | Q-Model (Eq. 2) | Euler Equation (Eq. 6) | Q-Model (Eq. 3) | Euler Equation (Eq. 7) | Q-Model (Eq. 4) | Euler Equation (Eq. 11) |
|---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Constant | 0.1427*** (9.2) | 0.1965*** (5.96) | 0.2929*** (11.92) | 0.1074*** (4.12) | 0.2316** (2.33) | 0.1814** (2.14) |
\( {\left(\raisebox{1ex}{$I$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it-1} \) | 0.1102***(5.36) | 0.1989*** (2.68) | 0.0550*** (5.81) | 0.0869*** (6.48) | 0.0619***(3.15) | 0.0711*** (3.28) |
Q it | 0.0165*** (4.19) | – | 0.0253*** (2.82) | – | 0.0758*** (2.86) | – |
\( {\left(\raisebox{1ex}{$S$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \) | – | 0.1280*** (7.52) | – | 0.1035*** (4.07) | – | 0.1151*** (3.05) |
\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \) | 0.2734*** (6.76) | 0.2417*** (2.58) | 0.2136*** (5.14) | 0.1575** (2.36) | 0.2314*** (4.99) | 0.1844** (2.17) |
\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it}\kern0.5em \times \kern0.5em {FDI}_t \) | – | – | −0.1140** (− 2.27) | − 0.0670** (− 2.38) | −0.1319** (− 2.15) | −0.0913** (− 2.49) |
FDI t | – | – | – | – | 0.0912** (2.42) | 0.0814** (2.51) |
m1 (p) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) |
m2 (p) | (0.19) | (0.74) | (0.11) | (0.78) | (0.22) | (0.29) |
Sargan Test | (0.19) | (0.22) | (0.17) | (0.28) | (0.29) | (0.38) |
Hansen-J Test | (0.27) | (0.29) | (0.23) | (0.15) | (0.51) | (0.56) |
Wald Test | χ2 (04) = 481.41 (0.0000) | χ2 (04) = 986.79 (0.0000) | χ2 (05) = 273.59 (0.0000) | χ2(05) = 827.36 (0.0001) | χ2 (06) = 374.53 (0.0000) | χ2(06) = 628.3 (0.0000) |