Nonlinearity of the Relationship between Human Capital and Exportation in Brazil

Table 5

Results of regressions run by using GMM models, the dependent variable is exports (ln𝑋), but separating Brazilian states into more and less industrialized states.

	GMM
Variables	More industrialized; states	Less industrialized; states
	(1)	(2)
ln𝑋𝑡−1	0.879*	0.895*
	(0.079)	(0.106)
ln𝐿	0.249*	−0.123
	(0.075)	(0.208)
𝐻	0.928**	0.628*
	(0.424)	(0.217)
𝐻^2	−0.0604**	−0.0432*
	(0.029)	(0.016)
ln𝐾	−0.162**	0.270***
	(0.072)	(0.158)
Constant	−2.825**	−2.726
	(1.299)	(1.863)
AR(2) (2nd-order serial correlation, P value)	0.34	0.63
Sargan test	0.99	0.98
𝐻^∗ (inflection point)^b	7.68	7.26
Number of observations	77	220

Source: estimated by the authors.
*Indicates level of significance of 1%; **indicates level of significance of 5%; ***indicates level of significance of under 10%, ns: nonsignificant. Robust std error are in parentheses. ^aTime dummies are not reported. ^bSee endnote number 12.
(1) states from Southeast and South Regions; (2) other Brazilian states.