Table 9.
Short and Long Run Results using Rule of Law.
| Variable | Spec 9 (IQ = ROL) |
Spec 10 (IQ = ROL) |
||
|---|---|---|---|---|
| Coeff. | t-Stat | Coeff. | t-Stat | |
| Short-Run Coefficients | ||||
| ECM (−1) | −0.771*** | −6.553 | −0.896*** | −7.616 |
| ΔLNDEBT | 0.420*** | 5.944 | 0.346** | 4.945 |
| ΔIQ | 1.230*** | 6.567 | 0.978*** | 6.788 |
| Δ(LNDEBT × IQ) | 0.664*** | 5.033 | ||
| ΔLNTFP | 0.544** | 3.879 | 0.947*** | 5.974 |
| ΔLNINF | −0.644* | 3.339 | −0.648*** | −6.879 |
| ΔLNGS | −0.333** | −4.944 | −0.441*** | 5.440 |
| ΔLNEXP | 0.320*** | 5.093 | 0.499** | 4.809 |
| C | 4.957*** | 5.380 | 5.930*** | −6.743 |
| Long-Run Coefficients | ||||
| LNDEBT | −0.620** | −4.890 | −0.238*** | −7.909 |
| IQ | 1.333 | 6.540 | 1.549*** | 7.784 |
| LNDEBT × IQ | 0.940*** | 6.849 | ||
| TFP | 0.908** | 3.584 | 1.093*** | 8.039 |
| LNINF | −0.104*** | −5.090 | −0.110** | −4.965 |
| GS | −0.343*** | −6.049 | −0.742 | −1.784 |
| LNEXP | 0.226* | 2.875 | 0.532* | 2.689 |
| C | 4.878*** | 5.042 | −5.339** | −4.911 |
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.