Table 4.
Robustness check
| Variables | OLS | FE-OLS | Difference-GMM | System-GMM | ||||
|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| MAN(t−1) | 0.965*** (0.014) | 0.969*** (0.014) | 0.888*** (0.025) | 0.889*** (0.025) | 0.871*** (0.085) | 0.845*** (0.094) | 0.956*** (0.023) | 0.961*** (0.023) |
| LCAP | 0.042* (0.024) | 0.038 (0.030) | 0.020 (0.033) | − 0.010 (0.042) | 0.123* (0.061) | 0.096* (0.052) | 0.066** (0.029) | 0.057 (0.039) |
| FDIIND | 0.082*** (0.027) | 0.103** (0.040) | 0.090* (0.053) | 0.103*** (0.039) | ||||
| DDIIND | 0.076* (0.040) | 0.031 (0.047) | − 0.032 (0.044) | 0.041 (0.030) | ||||
| LCAP * FDIIND | 0.007 (0.008) | − 0.021 (0.014) | − 0.001 (0.007) | 0.003 (0.006) | ||||
| LCAP * DDIIND | 0.007 (0.007) | − 0.013 (0.011) | 0.006 (0.006) | 0.006 (0.008) | ||||
| CONS | − 0.597 (0.469) | − 0.419 (0.465) | 2.107*** (0.605) | 2.086*** (0.609) | − 0.654 (0.721) | − 0.554 (0.764) | ||
| Control Var. | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Province FE | No | No | Yes | Yes | Yes | Yes | Yes | Yes |
| Year FE | No | No | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 544 | 544 | 544 | 544 | 544 | 544 | 544 | 544 |
| Provinces | 34 | 34 | 34 | 34 | 34 | 34 | 34 | 34 |
| Adj. R2 | 0.985 | 0.985 | 0.824 | 0.823 | ||||
| F-stat. | 4809*** | 4134*** | 2464*** | 1599*** | ||||
| Instruments | 29 | 29 | 29 | 29 | ||||
| AR-1 | 0.013 | 0.013 | 0.020 | 0.018 | ||||
| AR-2 | 0.232 | 0.321 | 0.254 | 0.390 | ||||
| Hansen (p-value) | 0.716 | 0.764 | 0.341 | 0.358 | ||||
Source: author
AR-1 and AR-2 denotes Arellano–Bond test with p-values results are reported. They are the necessary diagnostics for dynamic panel data estimation, i.e., GMM
Hansen J-test calculates overidentifying restrictions that occurs due to increasing number of instruments. P-value is reported
Robust standard error in parentheses, *p < 0.1, **p < 0.05, ***p < 0.01