Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 3
Regression estimates of bmod1. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
II
III
OLS
TSLS
OLS
TSLS
OLS
TSLS
Aid
−0.012***
−0.014***
−0.006***
−0.009***
−0.007***
−0.008***
(2.59)
(2.61)
(3.12)
(2.95)
(3.01)
(2.65)
Initial income
0.001***
0.0003
0.001***
−0.0007***
0.001***
−0.0009
(3.15)
(1.25)
(3.11)
(2.77)
(2.9)
(1.06)
Inflation
−0.003
−0.004
−0.001***
−0.001***
−0.001**
−0.025***
(0.98)
(1.32)
(2.58)
(2.69)
(2.11)
(3.01)
Corruption
0.116***
0.123*
0.161**
0.027
0.166***
0.09**
(3.22)
(1.55)
(2.01)
(1.13)
(3.02)
(1.98)
Corruption * aid
0.002***
0.001
0.0002
0.0002*
0.0007
0.0006*
(2.61)
(1.25)
(1.41)
(1.74)
(1.09)
(1.65)
Aid * aid
0.0004***
0.0005***
0.0004***
0.001***
0.0004***
0.001***
(2.99)
(2.86)
(3.1)
(2.97)
(3.22)
(3.72)
Investment
0.0001
−0.0004***
0.0004***
−0.0006**
0.0003
0.0001**
(0.56)
(2.95)
(4.21)
(1.97)
(1.47)
(2.36)
Intra-ECOWAS trade
−0.001
0.013
0.012***
0.025*
0.011***
0.028*
(1.55)
(1.02)
(3.89)
(1.75)
(4.32)
(1.88)
Broad money supply
0.029***
0.001*
0.003***
0.001
0.003***
0.0001
(4.54)
(1.79)
(2.85)
(1.26)
(2.94)
(1.56)
Trend
0.003**
−0.013**
0.002*
−0.007
0.006**
0.014
(1.98)
(2.44)
(1.78)
(0.84)
(1.97)
(1.45)
War
—
—
−0.158*
−0.031
−0.156*
−0.049*
(1.77)
(1.13)
(1.66)
(1.71)
UEMOA
—
—
−0.186***
−0.007
−0.187***
−0.336**
(3.96)
(0.78)
(3.25)
(1.97)
Corruption_1994
—
—
—
—
0.066
0.786
(1.02)
(1.41)
c
4.921***
6.882***
4.919***
7.281***
4.84***
6.355***
(5.01)
(3.25)
(3.79)
(5.02)
(7.16)
(7.01)
Number of countries
14
14
14
14
14
14
Observations
419
419
419
419
419
419
Adjusted
0.53
0.12
0.61
0.64
0.61
0.6
F statistics
116***
45***
56***
138***
211***
122***
***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.
