Table 10.
Endogeneity
| VARIABLES | ETHE | EHE | THE | |||
|---|---|---|---|---|---|---|
| First-differences | Orthogonal | First-differences | Orthogonal | First-differences | Orthogonal | |
| ETHEt-1 | 0.091c | 0.084c | - | - | - | - |
| (0.024) | (0.006) | - | - | - | - | |
| EHEt-1 | - | - | 0.076c | 0.053c | - | - |
| - | - | (0.035) | 0.003) | - | - | |
| THEt-1 | - | - | - | - | 0.068c | 0.027c |
| - | - | - | - | (0.035) | (0.055) | |
| GOVi,t | -0.168 | 0.143a | 9.864c | 3.260c | 9.792c | 3.920c |
| (0.354) | (0.123) | (0.514) | (0.650) | (0.514) | (0.65) | |
| MGi,t | 0.003a | 0.0193 | 1.420c | -1.290c | 1.94c | -1.470c |
| (2.381) | (0.165) | (0.471) | (0.868) | (0.467) | (0.868) | |
| (0.042) | (0.010) | (0.032) | (0.010) | (0.021) | (0.031) | |
| PMEi,t | -0.993 | -0.127 | -2.16c | -1.68c | -2.17c | -1.67c |
| (0.067) | (0.136) | (0.549) | (0.714) | (0.547) | (0.714) | |
| MIFi,t | 0.405b | 0.004a | 13.48c | -11.43c | 13.48c | -11.57c |
| (0.576) | (0.099) | (0.836) | (0.525) | (0.835) | (0.525) | |
| year | -0.068c | 0.002 | -2.813c | -3.046c | -2.816c | -2.716c |
| (0.018) | (0.019) | 0.026) | (0.104) | (0.026) | (0.103) | |
| Constant | 3.350 | 6.077c | 5.997c | |||
| (0.410) | (0.800) | (0.208) | ||||
| Sargan stat | 547.56 | 6548.41 | 342.13 | |||
| Turning point | 8.243 | 0.192 | 1.527 | 1.348 | 2.928 | 1.232 |
| Observations | 665 | 700 | 665 | 700 | 665 | 700 |
| Number of DMU | 35 | 35 | 35 | 35 | 35 | 35 |
Source: author’s calculations
The signs a, b, and c shows the significance level at 1%, 5% and 10% respectively