Working Paper Series: Special Edition of 2016 to 2018 Interns

Table 6. System GMM Estimation Results using Baseline Model. Determinants of per capita GDP growth in Latin America and the Caribbean. Variables Model 1 Model 1 Fixed Model 1 Float Model 1 Latin America Model 1 Caribbean

l.lngdp_pc

0.456***

0.463***

0.487***

0.479***

0.427**

(0.0866)

(0.121)

(0.0989)

(0.125)

(0.144)

rem

-0.0402***

-0.0367**

-0.0470**

-0.0209*

-0.0487***

(0.0122)

(0.0171)

(0.0195)

(0.0112)

(0.0161)

lnopns

-0.238**

-0.0996

-0.00919

-0.135

0.0369

(0.0774)

(0.160)

(0.108)

(0.0960)

(0.210)

fb

-0.0140

-0.0000972

-0.0331

-0.0434

0.00910

(0.0147)

(0.0138)

(0.0241)

(0.0315)

(0.00943)

fdi

0.0213**

0.0203*

0.0341*

0.0406

0.0169

(0.00860)

(0.0112)

(0.0270)

(0.0180)

(0.0120)

lnf_cons

-0.553**

-0.502**

-0.423*

0.0729

-1.172

(0.258)

(0.225)

(1.297)

(0.772)

(0.236)

infla

0.00744**

0.00194

-0.00761

-0.00418

-0.000930

(0.00389)

(0.00349)

(0.00958)

(0.00719)

(0.00952)

pop_g

-0.202***

-0.198**

-0.185**

-0.142

-0.172

(0.0590)

(0.0824)

(0.128)

(0.113)

(0.0726)

Intercept

7.946***

7.260***

10.84**

7.171**

4.973

(1.366)

(1.673)

(6.117)

(4.178)

(2.681)

Observations

90

48

42

48

42

No. of id

30

16

14

16

14

No. of Instruments

11

11

11

11

11

Hansen test of over-identifying restrictions

5.28

2.63

4.41

4.85

1.94

((0.071))

((0.269))

((0.110))

((0.089))

((0.380))

Arellano-Bond test for AR(1)

-1.31

-1.51

-1.08

-1.43

-1.94

((0.190))

((0.131))

((0.278))

((0.152))

((0.052))

Robust standard errors in single parentheses for system GMM estimates, p-value in double parentheses for Hansen and Arellano- Bond tests. Level of statistical significance: 1% ***, 5% ** and 10% *. Time dummies are not reported.

146