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Table 3 Derivation of Indices (Financial Openness and Globalization indices)

From: The comparative African regional economics of globalization in financial allocation efficiency: the pre-crisis era revisited

Principal Indicator

Indexes

Cor. coef. (t-stats)

Eigen Value

First PC variation

Component Matrix

Panel A: UEMOA

 Financial Openness

Finopex

0.898***

  

FDIgdp

PCFgdp

(23.53)

1.898

0.949

0.707

0.707

 Globalization

Globex

0.199**

  

Finopex

(I + X)gdp

(2.34)

1.199

0.599

0.707

0.707

Panel B: COMESA

 Financial Openness

Finopex

0.981***

  

FDIgdp

PCFgdp

(82.51)

1.981

0.990

0.707

0.707

 Globalization

Globex

0.250***

  

Finopex

(I + X)gdp

(4.15)

1.250

0.625

0.707

0.707

Panel C: CEMAC

 Financial Openness

Finopex

0.994***

  

FDIgdp

PCFgdp

(64.94)

1.994

0.997

0.707

0.707

 Globalization

Globex

0.360**

  

Finopex

(I + X)gdp

(2.58)

1.360

0.680

0.707

0.707

Panel D: EAC

 Financial Openness

Finopex

0.996***

  

FDIgdp

PCFgdp

(88.912)

1.996

0.998

0.707

0.707

 Globalization

Globex

−0.352***

  

Finopex

(I + X)gdp

(−2.744)

1.352

0.676

−0.707

− 0.707

  1. Globex: Globalization Index. Finopex: Financial Openness Index. FDIgdp and PCFgdp are capital account openness indicators. (I + X) gdp is the trade openness variable. PC: Principal Component. Cor. Coef: Correlation coefficient. *, **, ***: are respectively 10%, 5% and 1% significance levels