Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 4
Regression estimates of bmod2. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
II
III
OLS
TSLS
OLS
TSLS
OLS
TSLS
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 income
0.002***
0.01
0.001**
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**
−0.107
0.08***
0.091
0.101***
0.117**
(1.97)
(1.11)
(2.81)
(0.37)
(2.67)
(1.96)
Corruption * aid
0.003***
0.002***
0.009
0.0006**
0.002
−0.003
(4.16)
(3.05)
(0.87)
(2.08)
(1.17)
(1.42)
Aid * aid
0.01***
−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 trade
0.015***
0.004*
0.003***
0.035*
0.022
0.011*
(2.62)
(1.77)
(4.51)
(1.73)
(0.85)
(1.78)
Broad money supply
0.002***
0.08
0.002***
0.012
0.02***
−0.004
(3.36)
(1.14)
(3.25)
(1.44)
(2.78)
(1.47)
Trend
−0.003**
−0.004
−0.002**
0.013
−0.002
0.013
(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
—
—
—
—
0.016
1.043
(1.37)
(1.52)
c
4.932***
7.037***
4.931***
9.489***
4.913**
4.717*
(5.52)
(6.32)
(4.25)
(6.41)
(4.92)
(1.72)
Number of countries
14
14
14
14
14
14
Observations
419
419
419
419
419
419
Adjusted
0.51
0.36
0.54
0.72
0.84
0.70
F statistics
181***
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.
