Table 2.

Correlations between interest rate, growth, and interest-growth differential

	AE			EM
	Pooling		Average	Pooling		Average
	Correlation	p value	Correlation	Correlation	p value	Correlation
Full sample
$r-g,g$	− 0.46	0.00	− 0.49	− 0.31	0.00	− 0.41
$r-g,r$	0.89	0.00	0.86	0.82	0.00	0.72
r,  g	− 0.02	0.32	− 0.02	0.08	0.00	0.00
N	2789	2789	2789	1468	1468	1468
Post-WWII
$r-g,g$	− 0.51	0.00	− 0.55	− 0.30	0.00	− 0.41
$r-g,r$	0.92	0.00	0.86	0.81	0.00	0.71
r,  g	− 0.15	0.00	− 0.12	0.07	0.01	− 0.01
N	1579	1579	1579	1273	1273	1273

This table presents the correlations between average effective interest rate, growth, and interest-growth differential by time periods. The results for advanced economies and emerging economies are presented in the left and right panel, respectively. The second and fifth columns show the correlations by pooling all the observations, and the p values are shown in the third and sixth columns. The fourth and seventh columns show the averages of within-country correlations. Post-WWII period is from 1950 to 2018