Table 6.
Short and Long Run Results using Political Stability and Violence.
| Variable | Spec 3 (IQ=PSV) |
Spec 4 (IQ=PSV) |
||
|---|---|---|---|---|
| Coeff. | t-Stat | Coeff. | t-Stat | |
| Short-Run Coefficients | ||||
| ECM (−1) | −0.981*** | −7.659 | −0.889*** | −7.557 |
| ΔLNDEBT | 0.426*** | 5.804 | 0.578*** | 5.886 |
| ΔIQ | 1.349*** | 6.999 | 1.333*** | 5.456 |
| Δ(LNDEBT × IQ) | 0.901*** | 6.888 | ||
| ΔLNTFP | 0.998*** | 5.884 | 1.002* | 2.833 |
| ΔLNINF | −0.844*** | −5.804 | −0.793* | −2.880 |
| ΔLNGS | −0.871*** | −5.093 | −0.673*** | −4.988 |
| ΔLNEXP | 0.456*** | 4.803 | 0.561** | 3.451 |
| C | 6.265*** | 5.762 | 5.901*** | 5.883 |
| Long-Run Coefficients | ||||
| LNDEBT | −0.467*** | −5.436 | −0.356** | −3.778 |
| IQ | 1.612*** | 6.395 | 1.190*** | 7.888 |
| LNDEBT × IQ | 0.909*** | 6.221 | ||
| LNTFP | 0.998*** | 4.894 | 0.893** | 3.134 |
| LNINF | −0.345*** | −6.119 | −0.451* | −2.789 |
| LNGS | −0.533*** | −6.003 | −0.133 | −1.673 |
| LNEXP | 0.223** | 5.094 | 0.421** | 4.987 |
| C | 5.921*** | 6.342 | 5.003** | 3.883 |
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.