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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