Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 7
Regression estimates: random effects specifications of bmod1. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
III
III
WRSE
PCSE
WRSE
PCSE
WRSE
PCSE
Aid
−0.031***
−0.031***
−0.008
−0.008
0.024
0.024
(5.05)
(5.05)
(1.63)
(1.63)
(1.59)
(1.59)
Initial income
−0.19
−0.19
0.969***
0.969***
1.129*
1.129*
(1.41)
(1.41)
(3.36)
(3.36)
(1.85)
(1.85)
Inflation
−0.012***
−0.012***
0.006**
0.006**
0.003
0.003
(3.54)
(3.54)
(1.97)
(1.97)
(1.12)
(1.12)
Corruption
−0.005
−0.005
0.029**
0.029***
0.408
0.408
(0.65)
(0.65)
(2.54)
(2.58)
(0.51)
(0.51)
Corruption * aid
0.002***
0.002***
0.0012
0.0012
−0.009
−0.009
(3.41)
(3.41)
(1.64)
(1.63)
(1.42)
(1.42)
Aid * aid
0.001
0.001
−0.041***
−0.041**
−0.002*
−0.002*
(1.11)
(1.11)
(2.58)
(2.51)
(1.64)
(1.64)
Investment
−0.08***
−0.08***
−0.04***
−0.04***
−0.01
−0.01
(5.32)
(5.32)
(4.72)
(4.72)
(1.62)
(1.62)
Intra-ECOWAS trade
0.023
0.023
0.029**
0.029***
0.039
0.039*
(1.23)
(1.23)
(2.55)
(2.59)
(1.63)
(1.65)
Broad money supply
0.003
0.003
0.028***
0.028***
−0.007
−0.007
(1.6)
(1.6)
(3.31)
(3.31)
(1.45)
(1.45)
Trend
−0.009*
−0.009
−0.031***
−0.031***
0.038
0.038*
(1.71)
(1.71)
(4.32)
(431)
(1.62)
(1.64)
War
—
—
0.089***
0.089***
−0.437
−0.437
(3.89)
(3.89)
(0.54)
(0.54)
UEMOA
—
—
−0.003*
−0.003**
0.061
0.061
(1.64)
(1.97)
(1.15)
(1.15)
Corruption_1994
—
—
—
—
5.020
5.020
(1.62)
(1.62)
c
8.796***
8.796***
−14.151***
−14.151***
−9.156
−9.156
(3.25)
(3.25)
(4.13)
(4.13)
(1.01)
(1.01)
Number of countries
14
14
14
14
14
14
Observations
406
406
406
406
406
406
Adjusted
0. 65
0.65
0.6
0.6
0.58
0.58
F statistics
140***
140***
113***
113***
133***
133***
***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.
