Table 5.
Endogeneity problem - instrumental variable regression.
| Variable | First-stage regression |
Second-stage regression |
|||
|---|---|---|---|---|---|
| FER | FER2 | IER | PEB | NEB | |
| FER | −0.109** | −0.021 | |||
| (-2.01) | (-0.39) | ||||
| FER2 | 0.007** | 0.000 | |||
| (2.44) | (0.14) | ||||
| IER | 0.023*** | −0.046*** | |||
| (2.89) | (-7.94) | ||||
| VC | −0.183*** | −2.949*** | 0.050*** | ||
| (-6.98) | (-6.28) | (2.93) | |||
| GC | 0.584*** | 11.287*** | 0.475*** | ||
| (7.23) | (7.85) | (8.47) | |||
| TR | −0.190*** | −3.374*** | −0.067*** | ||
| (-9.96) | (-9.84) | (-4.12) | |||
| Lag1FER | 0.462*** | −6.678*** | 0.107 | ||
| (3.99) | (-3.46) | (1.49) | |||
| Lag1FER2 | 0.015** | 1.100*** | −0.012*** | ||
| (2.45) | (10.65) | (-3.04) | |||
| Lag1IER | −0.137*** | −2.721*** | 0.824*** | ||
| (-5.09) | (-5.74) | (29.35) | |||
| Cons | 2.455*** | 27.650** | −1.534*** | −0.085 | 0.315 |
| (3.71) | (2.41) | (-3.77) | (-0.34) | (1.28) | |
| Controls | Yes | Yes | Yes | Yes | Yes |
| IND & YEAR | Yes | Yes | Yes | Yes | Yes |
| N | 2756 | 2756 | 2756 | 2756 | 2756 |
| Adj_R2 | 0.112 | 0.257 | |||
Note: ***p < 0.01, **p < 0.05, *p < 0.1. Figures in parentheses are robust standard errors. All U-shaped and inverted U-shaped curves passed the U test. To limit the length of the table, Controls represents all control variables.