Table 7.
Short and Long Run Results using Government Effectiveness.
| Variable | Spec 5(IQ = GEF) |
Spec 6(IQ = GEF) |
||
|---|---|---|---|---|
| Coeff. | t-Stat | Coeff. | t-Stat | |
| Short-Run Coefficients | ||||
| ECM (−1) | −0.929*** | −7.897 | −0.898*** | −7.633 |
| ΔLNDEBT | 0.432** | 3.919 | 0.346*** | 4.352 |
| ΔIQ | 1.012*** | 4.903 | 1.233*** | 5.122 |
| Δ(LNDEBT × IQ) | 0.764*** | 5.903 | ||
| ΔLNTFP | −0.672** | −3.888 | 0.782*** | 5.422 |
| ΔLNINF | −0.541*** | −4.940 | −0.453*** | −4.993 |
| ΔLNGS | −0.134** | −3.773 | −0.098 | −1.887 |
| ΔLNEXP | 0.442* | 2.992 | 0.587* | 3.412 |
| C | 6.342* | 5.444 | 6.422** | 4.630 |
| Long-Run Coefficients | ||||
| LNDEBT | −0.322*** | −2.599 | −0.401*** | −7.965 |
| IQ | 1.071** | 4.012 | 1.340*** | 6.616 |
| LNDEBT × IQ | 0.921*** | 5.646 | ||
| LNTFP | 0.773 | 5.445 | 0.957** | 4.783 |
| LNINF | −0.192** | −3.244 | −0.214*** | −6.229 |
| LNGS | −0.123* | −3.056 | −0.097 | −1.889 |
| LNEXP | 0.332** | 3.624 | 0.5438** | 4.567 |
| C | 4.883*** | 5.042 | 4.934** | 4.904 |
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.