Table 3.
System GMM estimates of the Effects of sanctions on economic growth (only developed countries).
| Dependent variable: Real GDP per capita growth |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Independent Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) |
| Lagged GDP Per Capita | 0.967*** | 0.967*** | 0.974*** | 0.974*** | 0.974*** | 0.979*** | 0.973*** | 0.943*** | 0.601*** | 0.667*** | 0.534*** |
| (0.0380) | (0.0329) | (0.0308) | (0.0406) | (0.0308) | (0.0231) | (0.0225) | (0.0490) | (0.175) | (0.129) | (0.191) | |
| Capital formation | 0.0240 | 0.0230 | 0.0133 | 0.0233 | 0.0133 | 0.0112 | 0.0150 | 0.00355 | 0.133*** | 0.158*** | 0.140*** |
| (0.0203) | (0.0181) | (0.0141) | (0.0150) | (0.0141) | (0.0151) | (0.0164) | (0.0218) | (0.0449) | (0.0473) | (0.0428) | |
| Trade openness | 7.22e-05 | 7.86e-05 | 0.000108 | 4.66e-05 | 0.000108 | 8.13e-05 | 6.79e-05 | 0.000382 | 0.000215 | 0.000192 | 1.58e-05 |
| (0.000129) | (0.000132) | (0.000106) | (0.000148) | (0.000106) | (0.000156) | (0.000170) | (0.000341) | (0.000251) | (0.000266) | (0.000260) | |
| Human capital index | 0.0119*** | 0.0127*** | 0 | 0 | 0 | 0.0108*** | 0.0112 | 0.00483 | 0 | 0 | 0 |
| (0.00262) | (0.00322) | (0) | (0) | (0) | (0.00251) | (0.0194) | (0.0284) | (0) | (0) | (0) | |
| Government spending | −0.0215 | −0.0209 | −0.0134 | −0.0216 | −0.0134 | −0.0121 | −0.0148 | −0.00256 | 0.136 | 0.124 | 0.237* |
| (0.0196) | (0.0173) | (0.0157) | (0.0155) | (0.0157) | (0.0156) | (0.0150) | (0.0202) | (0.102) | (0.0768) | (0.128) | |
| Polity2 | 0.00514 | 0.00189 | −0.00567 | 0.0163 | −0.00567 | 0.00378 | −0.00105 | 0.00835 | 0.000355 | −0.000503 | 0.0183 |
| (0.0212) | (0.0310) | (0.0292) | (0.0223) | (0.0292) | (0.0235) | (0.0263) | (0.0247) | (0.0219) | (0.0230) | (0.0231) | |
| Economic institutions | 0.00274 | 0.00399** | 0.00272* | 0.00291** | 0.00272* | 0.00183 | 0.00445 | 0.00363 | −0.000690 | −0.000499 | 0.00226 |
| (0.00210) | (0.00192) | (0.00160) | (0.00113) | (0.00160) | (0.00213) | (0.00296) | (0.00225) | (0.00197) | (0.00136) | (0.00241) | |
| Sanctions | −0.0387 | ||||||||||
| (0.0265) | |||||||||||
| Extensive sanctions | −0.0640* | ||||||||||
| (0.0341) | |||||||||||
| Extensive sanctions | −0.00625 | ||||||||||
| (0.0222) | |||||||||||
| Limited sanctions | −0.00942 | ||||||||||
| (0.0144) | |||||||||||
| Limited sanctions | −0.00625 | ||||||||||
| (0.0222) | |||||||||||
| Multilateral sanctions | −0.207* | ||||||||||
| (0.109) | |||||||||||
| Unilateral sanctions | −0.00428 | ||||||||||
| (0.0108) | |||||||||||
| Sanctions duration | 1.11e-05 | ||||||||||
| (0.00113) | |||||||||||
| Import Restriction | 0.00492 | ||||||||||
| (0.00637) | |||||||||||
| Export Restriction | −0.0257* | ||||||||||
| (0.0155) | |||||||||||
| Asset Freeze | 0.00866 | ||||||||||
| (0.0210) | |||||||||||
| Constant | 0.285 | 0.297 | 0.281 | 0.218 | 0.281 | 0.246 | 0.274 | 0.543 | −2.548* | −3.568** | −4.560** |
| (0.349) | (0.252) | (0.275) | (0.333) | (0.275) | (0.219) | (0.186) | (0.374) | (1.449) | (1.473) | (1.960) | |
| Observations | 1104 | 1104 | 1104 | 1104 | 1104 | 1104 | 1104 | 1104 | 811 | 811 | 811 |
| Number of countries | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 |
| Number of instruments | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 |
| AR (2) test P-value | 0.321 | 0.124 | 0.421 | 0.135 | 0.237 | 0.535 | 0.232 | 0.452 | 0.257 | 0.161 | 0.115 |
| Hansen test P-value | 0.326 | 0.292 | 0.399 | 0.430 | 0.425 | 0.501 | 0.612 | 0.413 | 0.352 | 0.296 | 0.384 |
| Sargan test P-value | 0.763 | 0.619 | 0.724 | 0.674 | 0.826 | 0.792 | 0.728 | 0.802 | 0.755 | 0.696 | 0.712 |
Note: Standard errors in parentheses, ***, ** and * denote 1%, 5% and 10% level of significance respectively.