Table 1.
Determinants of inclusive growth in three income groups of countries using dynamic panel-data estimation, two-step system GMM
| Variables | HYCs | MYCs | LYCs |
|---|---|---|---|
| Inclusive growth (lagged) | 0.458*** (0.0541) | 0.969*** (0.0947) | 0.893*** (0.0613) |
| Institutions | 6.155*** (2.21) | 0.0493 (0.0615) | 0.00354 (0.237) |
| Social inclusion | 0.479*** (0.177) | 0.106*** (0.0391) | 0.298** (0.149) |
| Digital inclusion | 0.0318* (0.0171) | 0.00545 (0.0116) | 0.00382 (0.0339) |
| Trade openness | 0.0943*** (0.0228) | 0.0269* (0.0153) | − 0.117 (0.0753) |
| Investment | 0.0245* (0.0128) | 0.0131** (0.00517) | 0.0351* (0.0201) |
| Education | 0.0984** (0.0461) | 0.000694 (0.0263) | 0.0594 (0.0551) |
| Inflation | − 0.0013 (0.0318) | − 0.0114** (0.00547) | − 0.0436 (0.0299) |
| Constant | − 22.5 (14.73) | − 6.296* (3.387) | − 8.896 (10.64) |
| Number of observations | 174 | 138 | 168 |
| Number of countries | 29 | 23 | 28 |
| Wald χ2 value | 4051.3 | 985.57 | 10755.9 |
| Prob > χ2 | 0 | 0 | 0 |
| Arellano–Bond test for AR(2) in differences (p values) | 0.713 | 0.75 | 0.188 |
| Hansen test of joint validity of instruments (p value) | 0.881 | 0.908 | 0.935 |
| Hansen test (p value) | 0.634 | 0.665 | 0.476 |
Figures in parentheses are standard errors from two-step system GMM
***, **, and *represent significance levels of 1%, 5% and 10% respectively