Skip to main content
Financial Innovation

Table 3 Conditional Convergence (First Specification)

From: Fighting African capital flight: trajectories, dynamics, and tendencies

 

Income Levels

Legal Origins

Religious Dom.

Regions

Resources

Stability

Africa

UMI

LMI

MI

LI

English

French

Christ.

Islam

SSA

NA

Oil

Non-oil

Conflict

Non-co.

 

Initial

− 0.011

− 0.130

− 0.003

− 0.318

− 0.015

− 0.297

− 0.219

0.566

− 0.222*

1.247

0.002

− 0.22**

− 0.060

0.005

− 0.215

(0.932)

(0.813)

(0.976)

(0.398)

(0.897)

(0.187)

(0.158)

(0.667)

(0.086)

(0.451)

(0.996)

(0.044)

(0.940)

(0.949)

(0.104)

Constant

0.051

0.013

0.145

− 0.072

−0.136

− 0.247

− 0.0002

− 0.073

− 0.068

− 0.002

− 0.043

− 0.193*

− 0.064

0.011

−0.044

(0.480)

(0.693)

(0.618)

(0.644)

(0.346)

(0.430)

(0.997)

(0.404)

(0.620)

(0.976)

(0.632)

(0.097)

(0.724)

(0.914)

(0.695)

Gov’t Expenditure

−0.002

− 0.0002

− 0.008

0.0002

− 0.003

0.002

− 0.002*

0.001

− 0.002

− 0.0003

0.0001

− 0.0007

− 0.0009

−0.004

− 0.001

(0.897)

(0.709)

(0.184)

(0.939)

(0.276)

(0.722)

(0.074)

(0.590)

(0.399)

(0.441)

(0.983)

(0.806)

(0.735)

(0.128)

(0.483)

Trade

−0.0004

0.000

−0.0003

0.0003

0.0001

0.001

0.000

0.0003

0.0001

–

0.001

0.0004

0.002

0.0001

0.000

(0.776)

(0.933)

(0.549)

(0.875)

(0.775)

(0.491)

(0.805)

(0.804)

(0.735)

 

(0.505)

(0.422)

(0.585)

(0.746)

(0.937)

Foreign Direct Ivt.

–

−0.002

−0.0005

−0.004

0.0002

−0.006

− 0.001

−0.005

− 0.0001

–

–

− 0.0002

–

−0.001

0.001

 

(0.152)

(0.838)

(0.768)

(0.942)

(0.715)

(0.560)

(0.765)

(0.970)

  

(0.929)

 

(0.755)

(0.676)

GDP Growth

–

0.007

0.013

0.008

0.017

0.025

0.013

0.015

0.021

–

–

0.033*

–

0.017

0.019

 

(0.361)

(0.631)

(0.308)

(0.501)

(0.270)

(0.270)

(0.461)

(0.304)

  

(0.055)

 

(0.401)

(0.274)

Regulation Quality

–

–

−0.020

−0.149

−0.054*

−0.090

−0.009

–

−0.041

–

–

− 0.019

–

0.007

−0.04**

  

(0.533)

(0.367)

(0.078)

(0.545)

(0.751)

 

(0.210)

  

(0.663)

 

(0.868)

(0.043)

Financial Depth

–

–

−0.094

–

0.186

0.155

0.095

–

0.070

–

–

0.143*

–

0.009

0.048

  

(0.628)

 

(0.240)

(0.620)

(0.299)

 

(0.636)

  

(0.071)

 

(0.896)

(0.621)

Foreign Aid

–

–

0.0004

–

−0.002

−0.000

0.002

–

− 0.000

–

–

0.0005

–

0.001

−0.0003

  

(0.900)

 

(0.638)

(0.988)

(0.256)

 

(0.989)

  

(0.875)

 

(0.664)

(0.852)

Inflation

–

–

−0.003

–

–

–

−0.004*

–

− 0.001

–

–

− 0.001

–

−0.005

− 0.001

  

(0.213)

   

(0.053)

 

(0.581)

  

(0.711)

 

(0.145)

(0.421)

AR(1)

0.967

−0.745

−1.364

−0.859

−1.380

−0.935

−1.108

− 0.740

−1.247

−0.708

− 0.721

−1.285

−0.793

−1.361

−1.242

(0.333)

(0.455)

(0.172)

(0.390)

(0.167)

(0.349)

(0.267)

([0.459)

(0.212)

(0.478)

(0.470)

(0.198)

(0.427)

(0.173)

(0.213)

AR(2)

−0.885

−0.153

−1.097

0.120

− 1.021

−0.088

− 0.687

0.543

− 0.587

− 1.250

0.403

− 0.796

0.550

− 1.082

− 0.643

(0.375)

(0.877)

(0.272)

(0.904)

(0.307)

(0.929)

(0.491)

(0.587)

(0.556)

(0.211)

(0.686)

(0.426)

(0.582)

(0.278)

(0.519)

Sargan OIR

0.996

5.102

4.923

2.594

2.764

4.918

4.256

2.918

10.621

1.637

3.887

9.110

1.981

10.095

13.395

Wald

0.207

23.06***

22.55***

17.60***

18.78**

41.6***

32.89***

6.620

40.8***

7.910**

1.228

25.30***

4.381

21.01**

49.72***

(0.976)

(0.000)

(0.007)

(0.007)

(0.016)

(0.000)

(0.000)

(0.250)

(0.000)

(0.019)

(0.746)

(0.002)

(0.223)

(0.012)

(0.000)

Countries

5

9

13

9

11

11

17

7

19

4

5

19

6

17

22

Observations

73

129

95

56

77

72

114

81

125

60

69

129

77

116

149

  1. ***, **,*: significance levels of 1%, 5% and 10% respectively. AR(2): Second Order Autocorrelation test. OIR Over-identifying Restrictions test, Initial: lagged endogenous estimated coefficient, Wald: test for the joint significance of estimated coefficients, AC Absolute Convergence, CC Conditional Convergence, Yrs Years, UMI Upper Middle Income, LMI Lower Middle Income, MI Middle Income, LI Low Income, English English Common-law, French French Civil-law, Christ Christianity dominated countries, Islam Islam dominated countries, SSA Sub-Saharan Africa, NA North Africa, Oil Petroleum exporting countries. Non-oil: Countries with no significant exports in petroleum. Conflict: Countries with significant political instability. Non-co: Countries without significant political instability. Gov’t: Government. Ivt: Investment. GDP: Gross Domestic Product. The significance of bold values is twofold. 1) The significance of estimated coefficients and the Wald statistics. 2) The failure to reject the null hypotheses of: a) no autocorrelation in the AR(1) and AR(2) tests and; b) the validity of the instruments in the Sargan OIR test
Back to article page