Table 3.

Baseline specification system three stage least squares, non-OECD countries

Specification	(1)	(2)	(3)
Coefficient	Globalization	Freedoms	Convergence
Globalization		0.0388***	1.0825***
		(0.003)	(0.024)
Freedoms	4.9847***		−4.0641***
	(0.175)		(0.276)
Convergence	0.5519***	−0.0058***
	(0.012)	(0.002)
Lagged number of transitions to democracy		0.5167***
		(0.036)
Lagged constitutional age		0.0499***
		(0.003)
Lagged total number of democracies		−0.0027*
		(0.001)
Lagged fuel export dependence		−0.5084***
		(0.083)
Socialist legal origin		−1.2001***
		(0.143)
English colony		0.4241***
		(0.071)
French colony		−0.1888**
		(0.085)
Spanish colony		−0.0666
		(0.084)
Lagged urban population		0.0071***
		(0.002)
Lagged population density		−0.0002***
		(0.000)
Latin America	0.5222	−0.6627***	−5.6053***
	(1.083)	(0.155)	(1.557)
Middle East	−5.6110***	−1.5136***	13.2700***
	(1.197)	(0.158)	(1.702)
Africa	2.1973*	−1.3464***	−8.3420***
	(1.126)	(0.156)	(1.619)
Asia	−1.3291	−1.0177***	−2.1775
	(1.267)	(0.146)	(1.889)
Lagged total financial crises	−0.1240***
	(0.031)
Lagged inflation	−0.0005		0.0005
	(0.000)		(0.001)
Log distance from the rest of the world	−4.9008***		8.4924***
	(0.563)		(0.843)
Log area	0.0909		−0.7287***
	(0.175)		(0.262)
Log population	1.9957***		−2.9045***
	(0.243)		(0.371)
Investment rate			18.8558***
			(2.916)
Constant	51.2898***	2.7195***	−70.8752***
	(4.469)	(0.173)	(6.844)
Observations	2752	2752	2752
R-squared	0.2865	0.4823	0.3934

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