Table 6.
Coefficients associated with nominal exchange rates (β), corrected for endogeneity and interpolated using cubic, quadratic, and Denton methods.
| Country of origin | Country of destination |
|||||
|---|---|---|---|---|---|---|
| High-income economies |
Middle-income economies |
|||||
| β | Standard error | Test β =1 |
β | Standard error | Test β =1 |
|
| Cubic method | ||||||
| High-income economies | 1.219∗∗∗ | 0.171 | 1.640 | 2.542∗∗∗ | 0.604 | 6.510∗∗ |
| Middle-income economies |
1.803∗∗∗ |
0.895 |
0.810 |
-2.476 |
2.695 |
- |
| Quadratic method | ||||||
| High-income economies | 0.726∗∗∗ | 0.169 | 2.620 | 1.203∗∗ | 0.589 | 0.120 |
| Middle-income economies |
0.852 |
0.818 |
- |
-5.518∗∗ |
2.695 |
4.810∗∗ |
| Denton method | ||||||
| High-income economies | 1.189∗∗∗ | 0.169 | 1.260 | 2.293∗∗∗ | 0.600 | 4.640∗∗ |
| Middle-income economies | 1.847∗∗ | 0.887 | 0.910 | -2.216 | 2.660 | - |
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.