Table 4.
System GMM estimates of the Effects of sanctions on economic growth (only Developing 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 | 0.983*** | 0.984*** | 0.983*** | 0.983*** | 0.983*** | 0.984*** | 0.983*** | 0.983*** | 0.988*** | 0.987*** | 0.988*** |
| (0.000577) | (0.000593) | (0.000545) | (0.000478) | (0.000681) | (0.000611) | (0.000689) | (0.000718) | (0.000792) | (0.000799) | (0.000842) | |
| Capital formation | 0.000710*** | 0.000642*** | 0.000699*** | 0.000607*** | 0.000718*** | 0.000639*** | 0.000876*** | 0.000648*** | 0.0118*** | 0.0115*** | 0.0116*** |
| (7.34e-05) | (6.12e-05) | (8.23e-05) | (0.000108) | (7.08e-05) | (6.65e-05) | (9.38e-05) | (9.24e-05) | (0.000236) | (0.000295) | (0.000228) | |
| Trade openness | 0.000339*** | 0.000351*** | 0.000339*** | 0.000338*** | 0.000343*** | 0.000351*** | 0.000289*** | 0.000353*** | 0.000561*** | 0.000576*** | 0.000586*** |
| (1.65e-05) | (1.34e-05) | (1.82e-05) | (1.78e-05) | (1.91e-05) | (1.42e-05) | (2.48e-05) | (2.17e-05) | (1.69e-05) | (1.10e-05) | (1.00e-05) | |
| Human capital index | 0.00242 | 0.00387*** | 0.00278 | 0.00225* | 0.00255* | 0.00395** | 0.00430*** | 0.00299*** | −0.0151*** | −0.0121** | −0.0188*** |
| (0.00180) | (0.00136) | (0.00170) | (0.00119) | (0.00144) | (0.00181) | (0.00115) | (0.00115) | (0.00433) | (0.00501) | (0.00335) | |
| Government spending | 0.00271*** | 0.00280*** | 0.00274*** | 0.00285*** | 0.00270*** | 0.00281*** | 0.00276*** | 0.00274*** | −0.0126*** | −0.0126*** | −0.0129*** |
| (8.21e-05) | (8.91e-05) | (0.000137) | (0.000126) | (0.000142) | (0.000105) | (0.000143) | (0.000107) | (0.000232) | (0.000256) | (0.000212) | |
| Polity2 | −0.0429*** | −0.0430*** | −0.0444*** | −0.0446*** | −0.0446*** | −0.0429*** | −0.0387*** | −0.0438*** | 0.0823*** | 0.0813*** | 0.0870*** |
| (0.00263) | (0.00234) | (0.00299) | (0.00273) | (0.00297) | (0.00246) | (0.00253) | (0.00274) | (0.00350) | (0.00330) | (0.00450) | |
| Economic institutions | 0.0166*** | 0.0157*** | 0.0168*** | 0.0171*** | 0.0171*** | 0.0157*** | 0.0183*** | 0.0172*** | 0.0223*** | 0.0219*** | 0.0221*** |
| (0.000711) | (0.000791) | (0.00124) | (0.000912) | (0.00126) | (0.000804) | (0.00119) | (0.00114) | (0.000875) | (0.000896) | (0.000959) | |
| Sanctions | 0.0111*** | ||||||||||
| (0.00149) | |||||||||||
| Imposed sanctions | 0.0359*** | ||||||||||
| (0.00202) | |||||||||||
| Extensive sanctions | |||||||||||
| Limited sanctions | −0.0193*** | ||||||||||
| (0.00116) | |||||||||||
| Multilateral sanctions | 5.071 | ||||||||||
| (7.569) | |||||||||||
| Unilateral sanctions | 0.0358*** | ||||||||||
| (0.00205) | |||||||||||
| US sanctions | 0.0751*** | ||||||||||
| (0.00273) | |||||||||||
| Sanctions duration | −0.000109 | ||||||||||
| (9.93e-05) | |||||||||||
| Import Restriction | −0.0392*** | ||||||||||
| (0.00785) | |||||||||||
| Export Restriction | 0.00148 | ||||||||||
| (0.00699) | |||||||||||
| Asset Freeze | 0.0564*** | ||||||||||
| (0.00865) | |||||||||||
| Constant | 0.0555*** | 0.0515*** | 0.0591*** | 0.0600*** | 0.0605*** | 0.0514*** | 0.0470*** | 0.0577*** | 0.0101** | 0.0148*** | 0.00923* |
| (0.00452) | (0.00412) | (0.00447) | (0.00397) | (0.00478) | (0.00450) | (0.00556) | (0.00547) | (0.00476) | (0.00458) | (0.00536) | |
| Observations | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 | 5424 |
| Number of countries | 113 | 113 | 113 | 113 | 113 | 113 | 113 | 113 | 113 | 113 | 113 |
| Number of instruments | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 |
| AR (2) test P-value | 0.506 | 0.477 | 0.480 | 0.482 | 0.477 | 0.497 | 0.473 | 0.457 | 0.428 | 0.468 | 0.493 |
| Hansen test P-value | 0.435 | 0.438 | 0.453 | 0.431 | 0.438 | 0.688 | 0.431 | 0.442 | 0.452 | 0.422 | 0.432 |
| Sargan test P-value | 0.999 | 0.956 | 0.999 | 0.999 | 0.987 | 0.999 | 0.999 | 0.940 | 0.936 | 0.996 | 0.978 |
Note: Standard errors in parentheses, ***, ** and * denote 1%, 5% and 10% level of significance respectively.