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. 2022 Dec 15;8(12):e12328. doi: 10.1016/j.heliyon.2022.e12328

Table 2.

Results of the dynamic panel data models (1995–2019).

Variables High level of corruption (1)
 Low level of corruption (2)
(1.1) (1.2) (1.3) (1.4) (2.1) (2.2) (2.3) (2.4)
lgdp(-1)
System GMM 0.980∗ 0.955∗ 0.967∗ 0.847∗ 0.977∗ 0.982∗ 0.983∗ 0.763∗
Difference GMM 0.814∗ 0.834∗ 0.813∗ 0.539∗ 0.913∗ 0.894∗ 0.924∗ 0.571∗∗
vol
System GMM -0.043∗ -0.038∗ -0.038∗ -0.088∗∗ -0.219∗ -0.239∗ -0.914∗ -0.773∗
Difference GMM -0.024∗∗∗ -0.024∗∗ -0.023∗ -0.010∗ -0.616∗∗ -0.642∗ -0.999∗ -0.372∗∗

  • fdi

  • System GMM

  • Difference GMM

  • 0.342∗

  • 0.179∗∗

  • 0.225

  • 0.109∗

  • 0.006

  • 0.024

  • 0.022

  • 0.011

  • 0.036∗∗

  • 0.020∗∗

  • 0.113∗∗

  • 0.102

  • vol∗ mid fdi

  • System GMM

  • Difference GMM

  • -0.012∗∗

  • -0.007∗

  • -0.195∗∗

  • -0.258∗∗

  • -0.419∗

  • -0.538∗

  • -0.602∗∗∗

  • -0.165∗∗

  • vol ∗ high fdi

  • System GMM

  • Difference GMM

  • -1.734∗∗

  • -1.354

  • -0.090∗∗∗

  • -1.860

  • -0.011

  • -0.854∗∗∗

  • -0.167

  • -0.808

  • lgfcf

  • System GMM

  • Difference GMM

  • 0.045∗

  • 0.088∗

  • 0.058∗

  • 0.063∗

  • leoi

  • System GMM

  • Difference GMM

  • 0.025∗∗∗

  • 0.028∗∗∗

  • 0.018∗∗

  • 0.001

  • lgexp

  • System GMM

  • Difference GMM

  • -0.020

  • -0.004∗∗

  • -0.047∗∗

  • -0.029∗∗

  • edu

  • System GMM

  • Difference GMM

  • 0.177∗

  • 0.360∗

  • 0.341∗

  • 0.613∗

  • AR(1) p-value

  • System GMM

  • Difference GMM

  • 0.012

  • 0.014

  • 0.024

  • 0.027

  • 0.024

  • 0.028

  • 0.001

  • 0.005

  • 0.000

  • 0.000

  • 0.027

  • 0.000

  • 0.000

  • 0.000

 0.003

  • 0.054

  • AR(2) p-value

  • System GMM

  • Difference GMM

  • 0.364

  • 0.402

  • 0.769

  • 0.779

  • 0.753

  • 0.786

  • 0.587

  • 0.966

  • 0.076

  • 0.060

  • 0.797

  • 0.110

  • 0.714

  • 0.301

  • 0.182

  • 0.466

  • Hansen p-value

  • System GMM

  • Difference GMM

  • 0.633

  • 1.000

  • 1.000

  • 1.000

  • 0.987

  • 1.000

  • 1.000 0.745

  • 0.622

  • 1.000

  • 0.874

  • 1.000

  • 1.000

  • 1.000

  • 0.926

  • 1.000
Countries 121 118 118 112 73 71 71 63

Note: Logarithm of real per capita GDP as the dependent variable. Estimates were obtained using the command xtabond2 for Stata (Roodman, 2009). The coefficients and robust standard errors were estimated using two-step GMM, including dichotomous variables for years. The variables fdi, gfcf, eoi, gexp, edu indicate financial development index, gross fixed capital formation, economic opening index, government expenditure, and average expected years of education, respectively. High fdi indicates values in the last tercile of the distribution; mid fdi indicates values in the second tercile of the distribution, leaving the first tercile (low fdi) as the comparison group. In all cases, we reject the null hypothesis that all panels contain unit roots, according to a Fisher-type unit root test based on the ADF.

Statistically significant at 1% (∗), 5 % (∗∗), and 10% (∗∗∗).

P-values for first and second-order correlation test for the residuals; p-value for Hansen over-identification test.