Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 5
Regression estimates: fixed effects specifications of bmod1. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
III
III
WRSE
PCSE
WRSE
PCSE
WRSE
PCSE
Aid
−0.049***
−0.049***
−0.042***
−0.042***
−0.047***
−0.047**
(4.23)
(4.23)
(4.93)
(4.93)
(6.12)
(6.13)
Initial income
0.375***
0.375***
0.357***
0.357***
0.352***
0.352***
(5.02)
(5.02)
(4.23)
(4.22)
(5.42)
(5.42)
Inflation
−0.005**
−0.005***
−0.007***
−0.007***
−0.02***
−0.02***
(2.52)
(2.59)
(6.33)
(6.33)
(5.37)
(5.37)
Corruption
0.247**
0.247***
0.254***
0.254***
0.256***
0.256***
(2.55)
(2.58)
(4.14)
(4.14)
(4.75)
(4.75)
Corruption * aid
0.001
0.001
−0.004***
−0.004***
−0.005***
−0.005***
(1.02)
(1.02)
(2.94)
(2.94)
(3.41)
(3.41)
Aid * aid
−0.014***
−0.014***
−0.008**
−0.008**
−0.007**
−0.007*
(6.02)
(6.02)
(2.0)
(2.0)
(1.98)
(1.65)
Investment
0.03
0.03**
0.04**
0.04**
0.05**
0.05**
(1.02)
(2.14)
(1.97)
(1.97)
(2.01)
(2.02)
Intra-ECOWAS trade
0.006
0.006***
0.035**
0.035**
0.052*
0.052*
(1.61)
(2.59)
(2.49)
(2.49)
(1.75)
(1.75)
Broad money supply
0.003***
0.003**
0.002***
0.002***
0.001
0.001
(6.3)
(1.96)
(2.59)
(4.61)
(1.13)
(1.13)
Trend
−0.004
−0.004
−0.005**
−0.005**
0.003
0.003
(1.44)
(1.44)
(1.99)
(1.99)
(1.63)
(1.63)
War
—
—
0.013
0.013
0.016
0.016
(0.63)
(0.63)
(0.98)
(0.98)
UEMOA
—
—
−0.185***
−0.185***
−0.353***
−0.353**
(3.17)
(3.17)
(2.57)
(2.52)
Corruption_1994
—
—
—
—
0.301*
0.301*
(1.68)
(1.68)
c
6.782***
6.782***
7.073***
7.073***
6.221***
6.221***
(3.73)
(3.73)
(4.58)
(4.58)
(3.01)
(3.01)
Number of countries
14
14
14
14
14
14
Observations
419
419
419
419
419
419
Adjusted
0.61
0.61
0.65
0.65
0.61
0.61
F statistics
298***
298***
231***
231***
175***
175***
***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.
