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Table 12 Political stability 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   0.257a (0.000)   0.634a (0.000)   0.361a (0.000)   0.594a (0.003)
trade 0.007a (0.004) 0.080a (0.000) 0.072a (0.000) 0.023a (0.000) 0.134a (0.000) 0.011b (0.020) 0.040 (0.364) 0.044b (0.038)
lnMobile 0.356b (0.023) 0.420b (0.036) 0.135 (0.227) 0.012 (0.893) 0.816a (0.000) 0.053 (0.649) 2.866b (0.028) 0.003 (0.992)
LnGDP per capita 11.900a (0.002) 8.534a (0.000) -1.252 (0.303) 2.343a (0.010) -8.908a (0.000) 3.623a (0.000) 6.739 (0.438) 2.890c (0.105)
inflation 0.0001c (0.084) -0.001 (0.971) 0.021 (0.252) -0.015 (0.396) -0.002 (0.963) -0.037c (0.051) 0.368 (0.229) -0.216c (0.104)
agriculture -0.499b (0.013) 0.102c (0.014) -0.099b (0.034) 0.009c (0.100) -0.171c (0.068) -0.052 (0.229) 0.262 (0.844) 0.028 (0.916)
Political stability 1.281b (0.038) 3.390c (0.081) 0.563 (0.212) 1.798b (0.042) 0.197 (0.745) 4.025a (0.000) 0.190 (0.960) 2.668c (0.076)
Constant 51.835 (0.307) 32.388a (0.002) 9.363 (0.322) 0.305b (0.020) 8.770c (0.000) 9.519b (0.018) 9.354 (0.488) 12.316b (0.040)
AR(1)   0.000   0.000 0.385 0.000   0.002
AR(2)   0.118   0.128   0.197   0.220
Sargan   442.000   0.301   0.167   0.116
  1. Note: a, b and c denote significance at 1%, 5% and 10% level respectively. Parenthesis show P-values