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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