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Table 13 Regulatory Quality 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   0.576a (0.000)   0.638a (0.000)   0.331a (0.000)   0.623a (0.000)
Trade 0.007a (0.001) 0.035b (0.029) 0.072a (0.000) 0.020a (0.000) 0.133a (0.000) 0.017a (0.000) 0.041 (0.358) 0.049a (0.003)
lnMobile -0.368b (0.032) 0.326 (0.120) 0.123 (0.237) 0.023 (0.774) 0.875a (0.000) 0.196c (0.109) 2.905b (0.027) 0.455c (0.107)
LnGDP per capita 11.794b (0.023) 3.399a (0.000) -1.307 (0.269) 7.374a (0.000) -9.379 (0.650) 4.168 (0.150) 7.136 (0.432) 10.658 (0.113)
Inflation 0.000b (0.026) 0.000 (0.723) 0.018 (0.304) -0.015 (0.383) 0.006 (0.898) -0.033 (0.088) 0.367 (0.224) -0.215c (0.105)
Agriculture value added -0.490b (0.028) 0.036 (0.355) -0.093b (0.045) 0.015 (0.502) -0.137 (0.149) -0.035 (0.417) 0.249 (0.850) 0.522b (0.038)
Regulatory Quality -1.727 (0.654) 5.859 (0.188) 1.517 (0.219) 0.195 (0.114) 1.575c (0.053) 3.130a (0.009) 0.543 (0.909) 0.605c (0.064)
Constant 51.803b (0.036) 15.552c (0.094) 10.090 (0.272) -2.127a (0.000) 7.613a (0.000) 2.833c (0.079) 6.424 (0.471) 13.969b (0.029)
AR(1)   0.000   0.000 0.387 0.000   0.046
AR(2)   0.335   0.112   0.194   0.226
Sargan   0.256   0.611   0.367   0.275
  1. Note: a, b and c denote significance at 1%, 5% and 10% level respectively. Parenthesis show P-values