. 2023 Aug 30;9(9):e19521. doi: 10.1016/j.heliyon.2023.e19521

Table 7.

Effects of old-age populations on each compositional government spending (as GDP percentage) using two-step system GMM with old-age dependency ratio as a proxy for old-age populations.

Variable	(Public Admin)	(Defense)	(Order)	(Economic)	(Environment)	(Housing)	(Culture)	(Health)	(Education)	(Social Protection)
Old_depend, ln	−0.916**	0.0166	−0.0246	0.342⁺	0.0277*	−0.340***	0.0410⁺	0.0923⁺	−0.174**	1.626***
Old_depend, ln	(0.004)	(0.448)	(0.184)	(0.091)	(0.027)	(0.000)	(0.089)	(0.080)	(0.010)	(0.000)
GDP per capita	2.013***	−0.0699**	0.0328⁺	−0.0512	−0.00157	0.116*	0.0976***	0.201***	0.191**	1.463***
GDP per capita	(0.000)	(0.001)	(0.052)	(0.755)	(0.879)	(0.020)	(0.000)	(0.000)	(0.004)	(0.000)
L.exp_pub_gdp	0.212***
L.exp_pub_gdp	(0.000)
Trade to GDP	−0.166	−0.0329	0.0490*	0.792***	0.0240⁺	0.114*	0.154***	−0.0407	0.0969	−0.0798
Trade to GDP	(0.708)	(0.102)	(0.018)	(0.000)	(0.053)	(0.017)	(0.000)	(0.174)	(0.141)	(0.789)
Control of corruption	−2.313***	0.0701**	−0.0709**	0.00346	0.00288	0.0988⁺	0.000984	−0.0778⁺	0.0110	−1.238***
Control of corruption	(0.000)	(0.003)	(0.001)	(0.984)	(0.790)	(0.090)	(0.952)	(0.090)	(0.834)	(0.000)
Financial Openness	−3.115***	0.173***	−0.0126	−0.0371	0.0297**	−0.117	0.0355	0.0328	−0.0518	1.173*
Financial Openness	(0.000)	(0.000)	(0.623)	(0.896)	(0.007)	(0.188)	(0.422)	(0.628)	(0.602)	(0.010)
Democracy_dummy	1.158**	−0.144***	0.0363	−0.0752	0.0241**	−0.140*	−0.0520⁺	0.0625	0.227**	0.329
Democracy_dummy	(0.008)	(0.000)	(0.129)	(0.662)	(0.007)	(0.034)	(0.088)	(0.136)	(0.006)	(0.322)
L.exp_def_gdp		0.888***
L.exp_def_gdp		(0.000)
L.exp_order_gdp			0.857***
L.exp_order_gdp			(0.000)
L.exp_econ_gdp				0.349***
L.exp_econ_gdp				(0.000)
L.exp_envi_gdp					0.856***
L.exp_envi_gdp					(0.000)
L.exp_housing_gdp						0.173***
L.exp_housing_gdp						(0.000)
L.exp_cult_gdp							0.452***
L.exp_cult_gdp							(0.000)
L.exp_health_gdp								0.874***
L.exp_health_gdp								(0.000)
L.exp_edu_gdp									0.792***
L.exp_edu_gdp									(0.000)
L.exp_socpro_gdp										0.571***
L.exp_socpro_gdp										(0.000)
Constant	−0.0583	0.632***	0.0431	−1.305⁺	−0.167*	−0.385	−1.346***	−1.325***	−1.197**	−10.48***
Constant	(0.978)	(0.000)	(0.641)	(0.094)	(0.011)	(0.165)	(0.000)	(0.000)	(0.005)	(0.000)
N. Obs.	1382	1344	1382	1407	1130	1380	1310	1409	1408	1354
AR (1) p-value	0.0205	0.0155	0.0397	0.00188	0.000456	0.0239	0.0105	0.00368	0.00000682	0.140
AR (2) p-value	0.169	0.782	0.358	0.0264	0.908	0.355	0.326	0.448	0.724	0.294
Hansen p-value	0.158	0.320	0.0791	0.0438	0.108	0.494	0.284	0.119	0.187	0.0695

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 Old-Age Dependency Ratio (Old_depend, ln) is the main Independent Variable. For two-step System GMM, we let the Old-Age Dependency Ratio 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.