1. © The Author(s) 2014. Published by Science and Education Publishing.
Table 1. Financial development and economic growth (Without control variables): GMM
Sample of 72 countries
64 developing countries
8 developed countries
Variables
Coeff
Constant
-0,581***
-0,572***
-0,569***
(1,70)
(1,67)
GDP {1}
0,049**
0,044***
0,046**
(2,22)
(1,91)
(1,99)
Depth{1}
0,047*
-0,043*
0,046*
(2,98)
(2,99)
(3,17)
Private{1}
-0,043
-0,030
-0,064
(1,30)
(1,14)
(1,56)
Bank{1}
0,067*
0,059*
0,039*
(2,97)
Q (2)a
60,197
50,911
45,833
J-Specificationb
445,509
341,604
364,566 R2
0,594
0,593
0,567
Notes: The dependent variable is the growth rate of GDP per capita. Brackets, the value of t-statistics.
*** Significant at 10% level, ** significant at 5% level, * significant at 1%.
a The Q(2) statistic represents the test for second-order autocorrelation. The values shown in the table are p-values of the Q(2) statistic These values clearly show that a lack of autocorrelation of order 2.
b The values presented in the table represent the p-values of the J-test Specification. These values can widely accept the assumption of validity of the instruments.
Khalil Mhadhbi et al. Financial Development and Economic Growth: A Dynamic Panel Data Analysis. International Journal of Econometrics and Financial Management, 2014, Vol. 2, No. 2, doi: /ijefm-2-2-1
© The Author(s) Published by Science and Education Publishing.