Table 5 Sensitivity Analysis

VARIABLES

Uncond.

EIPT&Polity2

EIPT&Polity2

EIPT&Polity2

EIPT&Polity2

L.ROA

0.187***

0.153***

0.169***

0.143***

0.148***

(0.0224)

(0.0177)

(0.0193)

(0.0231)

(0.0272)

CreditGrowth (lag)

1.771***

1.555***

1.643***

2.776***

2.788***

(0.181)

(0.196)

(0.202)

(0.261)

(0.269)

Size

0.171***

0.191***

0.178***

0.256***

0.258***

(0.00708)

(0.0112)

(0.0189)

(0.0230)

(0.0233)

Risk

−0.00869

−0.0144

−0.0162***

0.00943

0.00958*

(0.00879)

(0.00917)

(0.00454)

(0.00602)

(0.00546)

MIE

−0.024***

−0.0231***

− 0.0241***

−0.0571***

− 0.0570***

(0.00359)

(0.00292)

(0.00246)

(0.00469)

(0.00515)

FG

0.0335***

−0.00829

0.00851

−0.0941***

−0.0919***

(0.00848)

(0.00923)

(0.0106)

(0.0228)

(0.0205)

GDPgrowth

0.0997***

0.111***

0.0799***

0.0321***

–

(0.00783)

(0.00690)

(0.00723)

(0.00556)

Infl

0.0419***

0.0413***

0.0331***

–

–

(0.00576)

(0.00600)

(0.00104)

lneipt

−0.612***

−4.132***

−3.398***

−4.285***

−4.238***

(0.158)

(0.492)

(0.390)

(0.566)

(0.596)

lnSSH

5.289***

5.929***

–

–

–

(0.569)

(0.571)

Polity2

0.223

82.19***

72.69***

99.81***

93.70***

(0.509)

(12.53)

(12.29)

(13.45)

(13.76)

Polity2*lneipt

–

6.476***

5.619***

7.836***

7.332***

(0.957)

(0.936)

(1.049)

(1.079)

Total effect of lneipt

–

−0.419

−0.177

0.208

−0.034

(0.282)

(0.536)

(0.602)

(0.619)

Constant

−14.77***

−75.18***

−43.70***

−51.13***

−50.70***

(3.226)

(7.223)

(5.213)

(7.228)

(7.553)

Observations

329

329

374

377

377

ID

37

37

39

40

(40)

Sargan’s test (S)

24.95(25)

25.79(25)

22.18(25)

25.30(25)

25.48(25)

1st order autocor.

−1.94*

−1.88*

−2.11**

−2.16**

−2.13**

2nd order autocor.

−0.77

−0.72

−1.10

−0.91

−0.94

CD

0.032

0.442

0.265

0.700

1.253

ADF

0.000

0.000

0.000

0.000

0.000