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Table 5 Interactive regression results for COMESA and EAC (Economic Regions)

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

 Banking System EfficiencyFinancial System Efficiency
ImportsExportsTradeFDIPCFFinopexGlobexImportsExportsTradeFDIPCFFinopexGlobex
Panel A: The COMESA Region
 Constant1.048***1.084***1.109***0.934***0.964***0.904***0.890***111.40***113.60***118.65***97.826***101.15***94.285***92.972***
(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)
 Imports−0.003*−0.523***
(0.081)      (0.007)      
 Exports− 0.005**− 0.665***
 (0.021)      (0.003)     
 Trade− 0.003**− 0.390***
  (0.014)      (0.001)    
 FDI− 0.022*− 2.570**
   (0.081)      (0.028)   
 PCF− 0.021*− 2.437**
    (0.082)      (0.030)  
 Finopex− 0.035*− 4.079**
     (0.074)      (0.025) 
 Globex− 0.061**− 6.790***
      (0.020)      (0.005)
 Policy−0.187***− 0.213***− 0.198***− 0.127***− 0.119***−0.098***− 0.100***− 19.74***− 22.81***−21.97***− 14.72***− 13.84***−10.96***−11.27***
(0.001)(0.000)(0.000)(0.000)(0.000)(0.001)(0.001)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)
 Imports.Policy0.002*0.238**
(0.059)      (0.023)      
 Exports.Policy0.003***0.399***
 (0.002)      (0.000)     
 Trade.Policy0.001**0.161***
  (0.014)      (0.003)    
 FDI.Policy0.0202.658*
   (0.167)      (0.050)   
 PCF.Policy0.0162.260*
    (0.236)      (0.084)  
 Finopex.Policy0.0314.100*
     (0.174)      (0.054) 
 Globex.Policy0.056**6.651***
      (0.022)      (0.003)
 GDP growth− 0.002− 0.001− 0.001− 0.004− 0.003− 0.004− 0.003− 0.291− 0.199− 0.221− 0.406− 0.395− 0.402− 0.278
(0.380)(0.585)(0.552)(0.176)(0.220)(0.180)(0.317)(0.300)(0.478)(0.438)(0.177)(0.183)(0.181)(0.355)
 Inflation−0.001***− 0.001***− 0.001***− 0.001***− 0.001***− 0.001***− 0.001***− 0.194***− 0.198***− 0.200***− 0.207***− 0.212***− 0.208***− 0.219***
(0.000)(0.000)(0.000)(0.000)(0.001)(0.001)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)(0.000)
 Public Investment−0.007−0.010**− 0.007− 0.006−0.008*− 0.006−0.0060.191−0.1310.230−0.101− 0.239−0.102− 0.065
(0.134)(0.044)(0.176)(0.196)(0.097)(0.196)(0.217)(0.692)(0.774)(0.640)(0.836)(0.621)(0.836)(0.894)
 Foreign Aid−0.003−0.003*− 0.003−0.004*− 0.005**−0.004*− 0.004−0.504**− 0.601***−0.630***− 0.774***−0.878***− 0.778***−0.685***
(0.137)(0.072)(0.103)(0.051)(0.015)(0.050)(0.107)(0.017)(0.002)(0.002)(0.001)(0.000)(0.001)(0.003)
 Hausman test6.679.737.447.819.067.309.737.444.166.705.9118.28**5.808.31
 R2 within0.1330.1510.1550.1330.1330.1330.1470.2080.2240.2460.2070.2060.2080.227
 Fisher5.34***6.17***6.40***4.73***4.83***4.76***5.35***9.08***9.99***11.42***8.10***8.18***8.12***9.11***
 Observations259259261233237233233259259261233237233233
Panel B: The EAC Region
 Constant0.265**0.557***0.426***0.435***0.424***0.316***0.239***14.87053.842***34.199***42.848***41.931***33.333***28.188***
(0.039)(0.000)(0.000)(0.000)(0.000)(0.000)(0.009)(0.218)(0.000)(0.003)(0.000)(0.000)(0.000)(0.002)
 Imports0.00020.540
(0.957)      (0.175)      
 Exports− 0.019***−1.785***
 (0.000)      (0.000)     
 Trade− 0.004**− 0.190
  (0.045)      (0.406)    
 FDI− 0.057***− 4.562**
   (0.002)      (0.013)   
 PCF− 0.057***− 4.541**
    (0.002)      (0.012)  
 Finopex− 0.075***− 6.003**
     (0.002)      (0.012) 
 Globex− 0.017−3.657
      (0.646)      (0.326)
 Policy−0.414− 0.165− 0.372**− 0.034− 0.0290.0120.002− 17.7467.914− 14.378− 2.236− 1.3834.8074.712
(0.107)(0.125)(0.012)(0.611)(0.645)(0.759)(0.959)(0.462)(0.484)(0.330)(0.747)(0.834)(0.253)(0.274)
 Imports.Policy0.0130.698
(0.125)      (0.401)      
 Exports.Policy0.009*0.014
 (0.060)      (0.980)     
 Trade.Policy0.007***0.394
  (0.008)      (0.170)    
 FDI.Policy0.0223.436
   (0.301)      (0.133)   
 PCF.Policy0.0213.194
    (0.302)      (0.141)  
 Finopex.Policy0.0294.367
     (0.300)      (0.136) 
 Globex.Policy− 0.0340.191
      (0.370)      (0.959)
 GDP growth0.0060.015**0.0080.015*0.016*0.015*0.0130.1711.0400.2210.5830.6290.6070.580
(0.491)(0.047)(0.366)(0.070)(0.063)(0.066)(0.156)(0.856)(0.193)(0.812)(0.505)(0.471)(0.487)(0.526)
 Inflation0.00030.003**0.0010.00060.00040.00050.0010.0750.425**0.1830.1200.1130.1170.135
(0.875)(0.043)(0.472)(0.780)(0.832)(0.806)(0.656)(0.750)(0.037)(0.436)(0.603)(0.623)(0.613)(0.589)
 Public Investment0.047***0.047***0.047***0.030**0.030**0.030**0.046***4.212**3.781***3.681***2.3612.3832.3703.538**
(0.007)(0.000)(0.001)(0.047)(0.047)(0.047)(0.008)(0.010)(0.006)(0.007)(0.135)(0.130)(0.133)(0.036)
 Foreign Aid0.001−0.00070.003−0.00030.0002−0.000040.00050.4480.5870.8850.6380.6690.6520.622
(0.849)(0.903)(0.602)(0.962)(0.968)(0.995)(0.942)(0.554)(0.349)(0.194)(0.380)(0.355)(0.369)(0.420)
 Hausman test5.73*18.96****11.93***4.554.454.494.4812.31***21.82***17.28***9.98***9.75***9.85***10.84***
 R2 within0.4060.6550.4900.5200.5240.5220.4060.4960.6340.4780.5230.5250.5240.469
 Fisher4.40***12.24***6.45***6.99***7.08***7.05***4.41***6.33***11.16***6.16***7.06***7.11***7.09***5.69***
 Observations5555575555555555555755555555
  1. *, **, ***: significance levels of 10%, 5% and 1% respectively. Policy: Regionalisation Policy. Imports: Imports of Goods and Services. Exports: Exports of Goods and Services. Trade: Imports plus Exports of Goods and Services. FDI: Foreign Direct Investment. PCF: Private Capital Flows. Finopex: Financial Openness Index. Globex: Globalisation Index. GDPg: Gross Domestic Product Growth rate. Pub. Ivt: Public Investment. Aid: Foreign Aid or Development Assistance. COMESA: Common Markets for Eastern and Southern Africa. EAC: East African Community. The bold values are the significant estimated coefficients and the Fisher statistics