Table 5.

Main results: dynamic fixed and random-effects MLE (spatial weight: inverse-distance)

VARIABLES	Temporal SDM-FE (1)	Temporal SDM-FE (2)	Temporal SDM-RE (3)	Temporal SDM-RE (4)
lnGini	− 0.743***	− 0.743***	− 0.434***	− 0.469***
	(0.199)	(0.199)	(0.132)	(0.135)
lnlag1TFP	0.253***	0.251***	0.278***	0.275***
	(0.0300)	(0.0300)	(0.0291)	(0.0290)
lnTrade	–	0.0271*	–	0.0247**
		(0.0165)		(0.0113)
lnHIV/AIDS	–	0.00304	–	− 0.00197
		(0.0190)		(0.0166)
lnEDUCAT	–	0.0521*	–	0.0272
		(0.0281)		(0.0177)
W * lnGini (${\theta }_2$)	0.714***	0.615***	0.123	0.173
	(0.291)	(0.296)	(0.100)	(0.106)
W * lnlag1TFP (${\theta }_1$)	0.355***	0.340***	0.344***	0.332***
	(0.094)	(0.094)	(0.092)	(0.092)
W * lnTFP $(\rho )$	0.413***	0.401***	0.411***	0.402***
	(0.080)	(0.081)	(0.079)	(0.079)
Constant	–	–	− 0.149**	− 0.437**
			(0.0652)	(0.173)
Observations	1092	1092	1092	1092
Pseudo R2	0.288	0.313	0.310	0.318
Model Selection tests
Log likelihood	− 839.47	− 836.43	− 868.59	− 864.68
AIC	1690.96	1690.86	1753.18	1751.36
SBIC	1720.93	1735.82	1793.15	1806.31
Wald χ2 model sign	524.11	532.71	551.17	562.56
Wald test spatial term	200.42***	172.08***	189.57***	177.33***
	[0.000]	[0.000]	[0.000]	[0.000]
${\sigma }_e^2$	0.540***	0.539***	0.534***	0.532***
F-test joint sign	(0.011)	(0.011)	(0.011)	(0.011)
Hausman test (χ2)		7.58**		7.12**
		[0.05]		[0.06]
SDM-FE (2) v/s SDM- RE (4)		16.46***
		[0.005]

Standard errors in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1

P-values in []

Hausman test $H_0$: Temporal SDM-RE is consistent