Table 10.
The Effects of Old-Age Populations on Each Compositional Government Spending (as Percentage of GDP) Using Two-step System GMM with Percentage of Old-Age Population as A Proxy for Old-Age Populations.
| Variable | (Public Admin) | (Defense) | (Order) | (Economic) | (Environ ment) | (Housing) | (Culture) | (Health) | (Education) | (Social Protection) |
|---|---|---|---|---|---|---|---|---|---|---|
| Percentage Old Pop, ln | −0.759** | 0.0222 | −0.0596* | −0.103 | 0.0477** | −0.281*** | 0.0360+ | 0.0100 | −0.0750* | 1.516*** |
| (0.001) | (0.333) | (0.035) | (0.640) | (0.004) | (0.000) | (0.073) | (0.867) | (0.035) | (0.000) | |
| GDP per capita | 1.410*** | −0.0687** | 0.0599** | 0.425+ | 0.0326* | 0.102* | 0.0672*** | 0.147* | 0.0827+ | 1.318*** |
| (0.000) | (0.002) | (0.008) | (0.057) | (0.026) | (0.026) | (0.000) | (0.016) | (0.072) | (0.000) | |
| Trade to GDP | −0.416 | −0.0342+ | 0.104* | 0.708*** | 0.0585*** | 0.164*** | 0.136*** | −0.0125 | 0.0640* | −0.0948 |
| (0.146) | (0.088) | (0.015) | (0.000) | (0.001) | (0.001) | (0.000) | (0.788) | (0.036) | (0.745) | |
| Control of corruption | −1.756*** | 0.0656** | −0.118*** | −0.320 | −0.0181 | 0.0821 | 0.0123 | −0.0379 | −0.00637 | −1.181*** |
| (0.000) | (0.003) | (0.000) | (0.297) | (0.207) | (0.131) | (0.431) | (0.442) | (0.882) | (0.000) | |
| Financial Openness | −1.754*** | 0.172*** | −0.0137 | −0.589+ | 0.0475* | −0.137+ | 0.0381 | 0.0436 | 0.0398 | 1.362** |
| (0.001) | (0.000) | (0.701) | (0.084) | (0.030) | (0.092) | (0.301) | (0.557) | (0.485) | (0.003) | |
| Democracy_dummy | 1.081*** | −0.146*** | 0.0823* | 0.125 | 0.0429** | −0.0934 | −0.0433 | 0.0963+ | 0.165*** | 0.419 |
| (0.000) | (0.000) | (0.033) | (0.595) | (0.007) | (0.133) | (0.115) | (0.077) | (0.001) | (0.206) | |
| L.exp_pub_ gdp | 0.516*** | |||||||||
| (0.000) | ||||||||||
| L.exp_def_gdp | 0.888*** | |||||||||
| (0.000) | ||||||||||
| L.exp_order_gdp | 0.717*** | |||||||||
| (0.000) | ||||||||||
| L.exp_econ_gdp | 0.307*** | |||||||||
| (0.000) | ||||||||||
| L.exp_envi_gdp | 0.627*** | |||||||||
| (0.000) | ||||||||||
| L.exp_housing_gdp | 0.243*** | |||||||||
| (0.000) | ||||||||||
| L.exp_cult_gdp | 0.575*** | |||||||||
| (0.000) | ||||||||||
| L.exp_health_gdp | 0.902*** | |||||||||
| (0.000) | ||||||||||
| L.exp_edu_gdp | 0.870*** | |||||||||
| (0.000) | ||||||||||
| L.exp_socpro_gdp | 0.573*** | |||||||||
| (0.000) | ||||||||||
| Constant | 0.729 | 0.643*** | −0.0222 | −2.624* | −0.548*** | −0.729** | −1.073*** | −0.946* | −0.532* | −8.567*** |
| (0.666) | (0.000) | (0.904) | (0.011) | (0.000) | (0.010) | (0.000) | (0.032) | (0.016) | (0.000) | |
| N. Obs. | 1382 | 1344 | 1382 | 1407 | 1130 | 1380 | 1310 | 1409 | 1408 | 1354 |
| AR (1) p-value | 0.0136 | 0.0156 | 0.0392 | 0.00214 | 0.000508 | 0.0186 | 0.0132 | 0.00330 | 0.00000124 | 0.140 |
| AR (2) p-value | 0.0224 | 0.783 | 0.364 | 0.0403 | 0.804 | 0.302 | 0.337 | 0.445 | 0.782 | 0.295 |
| Hansen p-value | 0.148 | 0.313 | 0.175 | 0.194 | 0.398 | 0.395 | 0.390 | 0.293 | 0.132 | 0.0921 |
Note: This table estimates the Effects of Old-Age Populations on each Compositional Government Spending using two-step System GMM. The Ratio of each Compositional Government Spending to GDP are Dependent Variables. The Percentage of Old-Age Population is the main Independent Variable. For two-step System GMM, we let the Percentage of Old-Age Population as Instrument, but put lagged Dependent Variable as Endogeneous with collapse option. The p-value of Auto-Correlation 1st and 2nd order, including Hansen's post-Estimation Tests are presented at the bottom Panel. The p-values are presented in parentheses and +p < 0.10, *p < 0.05, **p < 0.01, ***p < 0.001.
Source: Author's calculation.