Table 4: Regression estimates of bmod2. Dependent variable: income per capita (in natural logarithm).

Independent variables III III
OLSTSLSOLSTSLSOLSTSLS

Aid−0.016***−0.012**−0.009***−0.022***−0.009***−0.014
(2.63)(2.15)(4.02)(5.13)(4.12)(1.61)
Initial income0.002***0.010.001**0.08**0.001***−0.007
(3.15)(0.16)(2.03)(2.17)(4.11)(1.52)
Inflation−0.4−0.008***−0.002***−0.0003−0.002***−0.034
(0.97)(2.74)(4.19)(1.34)(3.48)(0.32)
Corruption 0.093**−0.1070.08***0.0910.101***0.117**
(1.97)(1.11)(2.81)(0.37)(2.67)(1.96)
Corruption * aid0.003***0.002***0.0090.0006**0.002−0.003
(4.16)(3.05)(0.87)(2.08)(1.17)(1.42)
Aid * aid0.01***−0.01***−0.03***−0.027***−0.046***−0.002**
(3.02)(2.89)(2.93)(3.74)(3.12)(3.75)
Investment−0.07−0.027*−0.01**−0.001***−0.051−0.04
(0.93)(1.89)(1.99)(3.36)(1.43)(1.60)
World trade0.015***0.004*0.003***0.035*0.0220.011*
(2.62)(1.77)(4.51)(1.73)(0.85)(1.78)
Broad money supply 0.002***0.080.002***0.0120.02***−0.004
(3.36)(1.14)(3.25)(1.44)(2.78)(1.47)
Trend −0.003**−0.004−0.002**0.013−0.0020.013
(3.23)(0.32)(1.98)(1.37)(1.19)(1.03)
War−0.141***0.083−0.140***0.6
(3.39)(1.12)(2.88)(1.37)
UEMOA−0.217***0.754−0.23**−0.851
(3.01)(0.19)(1.97)(1.26)
Corruption_1994 0.0161.043
        (1.37)(1.52)
c4.932***7.037***4.931***9.489***4.913**4.717*
(5.52)(6.32)(4.25)(6.41)(4.92)(1.72)
Number of countries141414141414
Observations419419419419419419
Adjusted 0.510.360.540.720.840.70
F statistics181***130***194***124***178***155***

***Indicates significance at the 1 percent level.
**Indicates significance at the 5 percent level.
*Indicates significance at the 10 percent level.
t statistics are in parenthesis.