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Table 11 Government effectiveness and FDI

From: Institutions and FDI: evidence from developed and developing countries

Variables Low Income Countries Lower Middle Income Countries High Income Countries Upper Middle Income Countries
FEM GMM FEM GMM FEM GMM FEM GMM
(lnFDI)t − 1   0.250a (0.000)   0.645a (0.000)   0.305a (0.000)   0.605a (0.001)
Trade 0.007 (0.891) 0.083a (0.000) 0.073a (0.000) 0.131a (0.000) 0.019a (0.000) 0.020a (0.000) 0.040 (0.362) 0.048a (0.007)
lnMobile -0.406 (0.214) 0.498b (0.015) 0.120 (0.255) 0.820a (0.000) 0.066 (0.409) 0.027 (0.816) 2.875b (0.026) -0.192 (0.562)
LnGDP per capita 11.889 (0.212) 25.597a (0.001) -1.333 (0.270) -9.318a (0.000) 4.311 (0.348) 4.228 (0.120) 6.774 (0.456) 7.261 (0.309)
Inflation 0.0001c (0.067) 0.000 (0.850) 0.017 (0.331) -0.005 (0.911) -0.014 (0.439) -0.023 (0.167) 0.369 (0.221) 0.211c (0.091)
Agriculture value added 0.490a (0.007) 0.111b (0.013) 0.106b (0.025) 0.155c (0.097) 0.004 (0.898) -0.120 (0.106) 0.254 (0.849) 0.268 (0.155)
Government effectiveness -2.216 (0.566) 0.110b (0.022) 1.263 (0.110) 0.155b (0.044) -0.737c (0.105) 1.182c (0.065) 0.046 (0.992) 6.371b (0.012)
Constant 53.075 (0.357) 35.489a (0.001) 10.454 (0.280) 7.680a (0.000) 0.870 (0.850) 19.750a (0.008) 9.583 (0.501) 4.752b (0.035)
AR(1)   0.000   0.000   0.000   0.055
AR(2)   0.176   0.118   0.216   0.212
Sargan   0.334   0.664   0.385   0.326
  1. Note: a, b and c denote significance at 1%, 5% and 10% level respectively. Parenthesis show P-values