Working Paper Series: Special Edition of 2016 to 2018 Interns

APPENDIX A

Table 3: Production Function, Average Years of Schooling General Specification with Select Dummy Variables and Quality-Adjusted Capital, 1970-2014 Dependent Variable: GDP/worker

j = Primary j =Secondary j = Tertiary Total Avg Yrs

Explanatory Variables

5.555*** (3.320) 1.627* (1.829) -0.466 (-0.513) -0.381*** (-3.456)

2.992*** (3.645) 1.704** (2.039)

Constant

2.867*** (4.264) 1.595** (2.084)

3.295*** (2.740) 1.976*** (3.345) -0.391 (-0.705) -0.390*** (-4.171)

% Change of ADJCapital/Worker

-1.021

-0.511

% Change of ADJCapital/Worker [-1]

(-1.300)

(-0.595)

-0.520*** (-4.990) 0.165** (2.299) 0.246*** (4.846) 0.148*** -0.125*** (-2.920) (3.978)

-

Log GDP/Worker [-1]

0.443** -0.015 (-0.198) 0.681*** (3.819) 0.150*** (3.646) - 0.121**

-0.133

Log ADJCapital/Worker [-1]

0.031 (0.390) 0.117** (2.521) 0.163* (1.927)

(-1.328)

Log J Avg Years of Schooling [-1]

-0.489*** (-3.153) 0.138***

DUMMY1972 A

(3.209)

-0.122** (-2.475)

-0.117*** (-5.136)

DUMMY1975

R-Squared

0.567 1.462 0.045 3.684 0.002

0.674 1.644 0.039 5.834 0.000

0.589 1.607 0.044 4.035 0.001

0.611 1.517 0.042 4.421 0.001

Durbin Watson B S.E. of Regression

F-Stat

Prob

N

43

43

43

43

*** - Significant at 1%, ** - Significant at 5%, * - Significant at 10%, T-statistics in parenthesis, Source: Author’s Calculations. A – Only significant dummies are reported. B - Breusch-Godfrey test finds no evidence for the presence of first and second order correlation in the residuals.

226