Table 2.

Baseline specification system three stage least squares, OECD countries

Specification	(1)	(2)	(3)
Coefficient	Globalization	Freedoms	Convergence
Globalization		0.0280***	0.5674***
		(0.002)	(0.055)
Freedoms	11.6373***		16.4318***
	(0.699)		(1.137)
Convergence	0.0998***	0.0141***
	(0.019)	(0.001)
Lagged number of transitions to democracy		−0.1640***
		(0.040)
Lagged constitutional age		−0.0019
		(0.002)
Lagged total number of democracies		−0.0008
		(0.001)
Lagged fuel export dependence		0.0525
		(0.066)
Socialist legal origin		0.2322***
		(0.078)
English colony		0.1283***
		(0.041)
Spanish colony		0.0423
		(0.090)
Lagged urban population		0.0058***
		(0.001)
Lagged population density		−0.0001
		(0.000)
Latin America	5.9879***	−0.2136	−10.8138***
	(2.152)	(0.148)	(3.372)
Middle East	6.0879	−0.3278	−3.6675
	(4.599)	(0.254)	(7.317)
Asia	−3.7646	0.1804	−7.5481*
	(2.452)	(0.153)	(3.957)
Lagged total financial crises	−0.0786
	(0.050)
Lagged inflation	−0.1666***		0.1931***
	(0.032)		(0.053)
Log distance from the rest of the world	−6.2453***		6.8151***
	(0.696)		(1.168)
Log area	−0.3967		0.2447
	(0.258)		(0.413)
Log population	1.4396***		−0.7416*
	(0.262)		(0.431)
Investment rate			86.1708***
			(9.194)
Constant	42.5190***	3.2734***	−162.9118***
	(6.105)	(0.161)	(10.852)
Observations	1021	1021	1021
R-squared	0.3903	0.4220	0.4054

The system is estimated by three-stage least squares. Time and countries dummies are included but not presented for reasons of parsimony. Heteroskedastic-consistent standard errors are in parentheses. ***, ** and * denote significant coefficients, respectively at the 1, 5 and 10% confidence levels