Table 4.

Robustness checks using GMM and truncated samples.

Variables	GMM		Excluding GFC affected countries		OLS
	(1)	(2)	(3)	(4)	(5)	(6)
GDPG	0.0005*	0.0004*	0.0003***	0.0008**	0.0001	0.0003*
	(0.0001)	(0.0001)	(0.0002)	(0.0004)	(0.0001)	(0.0001)
Gini	−0.0004*	$<$0.0001	−0.0009***	−0.0009*	−0.0010*	−0.0008**
	(0.0001)	($<$0.0001)	(0.0005)	(0.0003)	(0.0003)	(0.0003)
PE	0.0005	0.0001	0.0012	0.0040*	0.0011**	0.0008
	(0.0005)	(0.0001)	(0.0011)	(0.0009)	(0.0006)	(0.0006)
MIMLI	0.0016**	0.0001***	0.0091*	0.0224*	0.0036*	0.0086*
	(0.0006)	(0.0003)	(0.0014)	(0.0017)	(0.0013)	(0.0006)
Forest	0.0011	$<$0.0001	0.0031	−0.0003*	−0.0001	0.0034**
	(0.0007)	($<$0.0001)	(0.0029)	(0.0001)	(0.0002)	(0.0012)
OverGovtIdeol	0.0001	−0.0001	0.0011**	−0.0018**	0.0008*	0.0008*
	(0.0002)	(0.0001)	(0.0004)	(0.0009)	(0.0002)	(0.0003)
Globalisation	−0.0002	$<$0.0001	0.0018**	0.0016*	0.0015*	0.0017*
	(0.0002)	($<$0.0001)	(0.0009)	(0.0004)	(0.0003)	(0.0004)
Lagged HDI	0.8046*	0.9808*
	(0.0375)	(0.0061)
Constant	0.0224*	0.0220*	0.5603	0.5814	0.7296*	0.6792*
	(0.0059)	(0.0057*)	(0.1393)	(0.0370)	(0.0299)	(0.0358)
Time FE	Yes	Yes	Yes	Yes	Yes	No
Country FE	No	No	No	No	No	Yes
R-squared			0.7188		0.5746	0.9860
AR(1)	0.0010	0.0010
AR(2)	0.8900	0.5370
Sargan OIR	0.1240	0.1260
Hansen OIR	1.0000	1.0000
DHT for instruments
(a) Instruments in levels H excluding group		1.0000
Dif (null, H $\raisebox{1ex}{$1$}\!\left/ \!\raisebox{-1ex}{$4$}\right.$ exogenous)		1.0000
(b) IV (years, eq [diff]) H excluding group	1.0000	1.0000
Dif(null, H $\raisebox{1ex}{$1$}\!\left/ \!\raisebox{-1ex}{$4$}\right.$ exogenous)	0.6470	0.9460
Fisher	6101.62*	9319.41*
Wald chi-squared					1054.67*	21663.21*
Number of instruments	28	28
No. of groups	35	35	27	27	35	35
Number of observations	350	350	270	270	350	350

Note: Figures in the parentheses represent standard error. *, ** and *** denote statistically significant at 1%, 5% and 10%, respectively. DHT: difference-in-Hansen test for exogeneity of instruments’ subsets; Dif: difference; OIR: over-identifying restrictions test.