Table 4.
Coefficients associated with the nominal exchange rate differential (β), corrected for endogeneity using the Hausman-Taylor estimator.
| Country of origin | Country of destination |
|||||
|---|---|---|---|---|---|---|
| High-income economy |
Middle-income economy |
|||||
| β | Standard error | Test β =1 |
β | Standard error | Test β =1 |
|
| High-income economy | 1.098∗∗∗ | 0.170 | 0.330 | 1.733∗∗∗ | 0.581 | 1.590 |
| Middle-income economy | 1.267 | 0.831 | - | -2.869 | 2.989 | - |
Notes: - stands for cases in which test β = 1 is not obtained since β -coefficient is not significant. ∗,∗∗, and ∗∗∗ corresponds to significance at the 10%, 5%, and 1%, respectively.