Table 6.
Regression results: Effect of old-age population on aggregate government spending by income group.
| Variable | (Income ≤ 12,000 USD) | (Income >12,000 USD) |
|---|---|---|
| Old_depend, ln | 0.00605 | 0.178*** |
| (0.126) | (0.000) | |
| L. Gov Spending | 0.918*** | 0.750*** |
| (0.000) | (0.000) | |
| GDP per capita | 0.00807 | 0.0938*** |
| (0.617) | (0.000) | |
| Trade to GDP | −0.0101 | 0.0431*** |
| (0.114) | (0.000) | |
| Control of corruption | 0.164*** | 0.0849*** |
| (0.000) | (0.000) | |
| Financial Openness | 0.0176 | −0.0469* |
| (0.262) | (0.028) | |
| Democracy_dummy | −0.00225 | 0.0139 |
| (0.794) | (0.110) | |
| N. Obs. | 702 | 1003 |
| AR (1) p-value | 0.00578 | 0.0222 |
| AR (2) p-value | 0.911 | 0.377 |
| Hansen p-value | 0.871 | 0.359 |
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 using Old-Age Dependency Ratio in Logarithmic form is the main Independent Variable. We use the two-step System generalized Methods of Moment to estimate interested parameters. Income > 12000 represents the Group of countries which the Level of Income above 12000 USD. Income ≤ 12000 represents the Group of countries which the Level of Income below or equal to 12000 USD. 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 calculation