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Table 2 Dynamic panel data estimation, one-step system GMM: Interaction effect of FDI and FD on HEWE

From: The interaction effect of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa

HEWE
Regressors Model I Model II Model III Model IV Model V
L1 HEWE 0.987***(0.037) 1.044***(0.064) 1.028***(0.041) 1.054***(0.052) 1.027***(0.044)
FDI −2.04**(0.620) −1.99**(0.647) −13.321***(3.461) −2.023**(0.782) − 23.762***(7.967)
L1 FDI 2.44**(0 .736) 2.513**(0.882) 14.585***(3.282) 2.793**(0.928) 21.112***(3.378)
DOMCR 0.153(0.102) 0.045(0.095)
L1 DOMCR − 0.247*(0.128) −0.129(0.098)
MS 0.285**(0.097) 0.093(0.156)
L1 MS −0.514**(0.160) −0.362**(0.177)
FDI*DOMCR 4.953***(1.373)
L1 FDI*DOMCR −5.617***(1.393)
FDI*MS 6.634***(2.192)
L1 FDI*MS −5.952***(0.982)
Openness 0.088(0.154) 0.035(0.164) 0.142(0.228) 0.071(0.158) 0.211(0.233)
Inflation −0.014***(0.002) −0.015***(0.002) − 0.015***(0.003) −0.014***(0.002) − 0.016***(0.003)
AR 1 0.092 0.109 0.003 0.113 0.008
AR 2 0.158 0.214 0.539 0.204 0.356
Hansen 0.10 0.258 0.918 0.242 0.312
  1. Note: Values in parenthesis denote the robust standard errors of respective estimates. ***p < 0.01 (1%), **p < 0.05 (5%) and *p < 0.10 (10%) denote the level of significance. Time dummies from 2000 to 2013 not reported. Number of observation: N = 23; T = 14. FDI is used as indicator for foreign capital inflows (FCF); Domestic Credit (DOMCR) and Money Supply (MS) are used as indicators for Financial Development (FD) in models (II, III) and (IV, V) respectively