Table 1.

Variables description.

Variable Description	Abbreviation	Data Source
GDP growth	Yit	WDI
Public debt to GDP ratio	Debt	IMF
Voice and accountability	VAA	WGIs
Political stability and violence	PSV	WGIs
Government effectiveness	GEF	WGIs
Regulatory quality	REQ	WGIs
Rule of law	ROL	WGIs
Control of corruption	COC	WGIs
Total factor productivity	TFP	Authors own calculation
Inflation	Inf	WDI
General government spending as GDP’ ratio	GS	PWT 9.1
Total exports as share of GDP	Exp	PWT 9.1