Table 15.

Regression results of the income group.

Explained variable: EI (GMM)	(1)	(2)	(3)	(4)
Low-income countries
L.EI	0.8085∗∗∗	0.8325∗∗∗	0.8010∗∗∗	0.8278∗∗∗
	[0.0067]	[0.0064]	[0.0060]	[0.0059]
FD	-0.0300∗∗∗
	[0.0050]
FI		-0.0072∗∗∗
		[0.0026]
FM			-0.0361∗∗∗
			[0.0023]
dctps				-0.0081∗∗∗
				[0.0012]
_cons	-0.0280∗∗∗	-0.0240∗∗∗	-0.0282∗∗∗	-0.0223∗∗∗
	[0.0038]	[0.0030]	[0.0033]	[0.0032]
Control variables	YES	YES	YES	YES
Observations	669	702	669	696
NO of country	34	34	34	34
NO of IVs	69	71	69	71
AR (2) test (p-value)	0.7976	0.4983	0.7542	0.5035
Sargan test (p-value)	0.9997	0.9999	0.9996	0.9999
Middle- and high-income countries
L.EI	0.8301∗∗∗	0.8359∗∗∗	0.8589∗∗∗	0.9188∗∗∗
	[0.0038]	[0.0021]	[0.0013]	[0.0014]
FD	-0.2495∗∗∗
	[0.0116]
FI		-0.1412∗∗∗
		[0.0052]
FM			-0.0629∗∗∗
			[0.0092]
dctps				-0.0285∗∗∗
				[0.0028]
_cons	0.0591∗∗∗	0.0581∗∗∗	0.0526∗∗∗	0.0407∗∗∗
	[0.0069]	[0.0031]	[0.0031]	[0.0026]
Control variables	YES	YES	YES	YES
Observations	617	617	617	666
NO of country	33	33	33	33
NO of IVs	67	67	67	71
AR (2) test (p-value)	0.9674	0.9526	0.9234	0.5300
Sargan test (p-value)	0.9998	0.9987	0.9990	0.9996

Standard errors in brackets, ∗∗∗ 1% ∗∗ 5% ∗ 10%, ∗p < 0.1, ∗∗p < 0.05, ∗∗∗p < 0.01.