Table 5.
Short and Long Run Results using Voice and Accountability.
| Variable | Spec 1 (IQ=VAA) |
Spec 2 (IQ=VAA) |
||
|---|---|---|---|---|
| Coeff. | t-stat | Coeff. | t-stat | |
| Short-run Coefficients | ||||
| ECM (−1) | −0.877*** | −7.454 | −0.896*** | −7.616 |
| ΔLNDEBT | 0.137** | 4.137 | 0.124** | 2.994 |
| ΔIQ | 0.283*** | 4.512 | 0.216** | 4.611 |
| Δ(LNDEBT × IQ) | 0.723*** | 5.663 | ||
| ΔLNTFP | 2.004 | 0.55 | 1.232 | 0.975 |
| ΔLNINF | −0.526** | −5.037 | −0.905** | −4.565 |
| ΔLNGS | −0.327 | −0.29 | −1.507 | −1.838 |
| ΔLNEXP | 2.377* | 2.324 | 2.117* | 2.389 |
| C | 6.394 | 1.265 | 7.793** | 4.471 |
| Long-run Coefficients | ||||
| LNDEBT | −0.648* | −2.348 | −0.603*** | −6.893 |
| IQ | 1.485*** | 4.832 | 1.573*** | 6.033 |
| LNDEBT × IQ | 0.813*** | 5.905 | ||
| LNTFP | 1.083** | 3.933 | 1.829 | 2.215 |
| LNINF | −1.028** | −3.78 | −1.928*** | −7.835 |
| LNGS | 0.871 | 0.315 | 0.796*** | 6.248 |
| LNEXP | 2.272 | 1.319 | 2.377* | 2.324 |
| C | 7.578 | 1.293 | −6.940*** | −5.904 |
Notes: Spec. Is the short form of specification and coeff. represents the coefficient. Δ is the first difference, whereas C is the constant term. *, ** and *** represents the significance at 10%, 5% and 1% respectively.