Table 4.
Regression results using various econometrics methods with old-age dependency ratio as a proxy for old-age populations).
| Variable | (OLS) | (FE) | (1DGMM) | (2DGMM) | (1SGMM) | (2SGMM) |
|---|---|---|---|---|---|---|
| Old__depend, ln | 0.0199*** | 0.0539+ | 0.0913 | −0.0154 | 0.0609** | 0.0642*** |
| (0.000) | (0.069) | (0.386) | (0.731) | (0.001) | (0.000) | |
| L. Gov Spending | 0.912*** | 0.714*** | 1.021*** | 1.061*** | 0.794*** | 0.798*** |
| (0.000) | (0.000) | (0.000) | (0.000) | (0.000) | (0.000) | |
| GDP per capita | 0.0835*** | 0.200*** | −0.261 | −0.204** | 0.147* | 0.137*** |
| (0.000) | (0.000) | (0.579) | (0.001) | (0.027) | (0.000) | |
| Trade to GDP | 0.00844+ | 0.00345 | 0.0272 | 0.0199* | 0.0199 | 0.0170** |
| (0.069) | (0.785) | (0.715) | (0.015) | (0.193) | (0.003) | |
| Control of corruption | 0.0116* | 0.0556*** | 0.0246 | 0.0246** | 0.0813** | 0.0879*** |
| (0.015) | (0.000) | (0.384) | (0.005) | (0.001) | (0.000) | |
| Financial Openness | −0.0134+ | −0.0167 | −0.0421 | −0.0238 | 0.0384 | 0.0304* |
| (0.095) | (0.348) | (0.438) | (0.448) | (0.199) | (0.026) | |
| Democracy_dummy | 0.0025 | 0.0298* | 0.0270 | 0.0205 | −0.0150 | −0.0211*** |
| (0.706) | (0.010) | (0.552) | (0.117) | (0.494) | (0.001) | |
| Constant | −0.214*** | −0.134 | −0.399+ | −0.362*** | ||
| (0.000) | (0.475) | (0.064) | (0.000) | |||
| N. Obs. | 1705 | 1705 | 1428 | 1428 | 1705 | 1705 |
| R-Squared | 0.996 | 0.854 | ||||
| Adjusted R-Squared | 0.996 | 0.843 | ||||
| AR (1) p-value | 0.00396 | 0.00462 | 0.00424 | 0.00842 | ||
| AR (2) p-value | 0.262 | 0.261 | 0.319 | 0.329 | ||
| Hansen p-value | 0.0908 | 0.0908 | 0.0831 | 0.0831 |
Note: This table estimates the relationship between Old-Age Populations, using Old-Age Dependency Ratio as a proxy, and Government Spending at the Aggregate Level. The Total Final Government Consumption per Capita in Logarithmic form is Dependent Variables. The Old-Age Dependency Ratio in Logarithmic form (Old_depend, ln) is the main Independent Variable. OLS represents the Ordinary Least Square Method: FE id Panel Data Model with Fixed Effect; 1DGMM and 2DGMM are one- and two-step Difference Generalized Methods of Moment, respectively, and 1SGMM and 2SGMM are one- and two-step System Generalized Methods of Moment, respectively. The p-value of Auto-Correlation 1st and 2nd order, including ' 'Hansen's post-Estimation Tests for Dynamic GMM 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 calculations.