Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 6
Regression estimates: fixed effects specifications of bmod2. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
III
III
WRSE
PCSE
WRSE
PCSE
WRSE
PCSE
Aid
−0.018***
−0.018***
0.011
0.011
−0.029
−0.029
(5.6)
(5.6)
(1.36)
(1.36)
(1.42)
(1.42)
Initial income
0.72***
0.72***
0.725***
0.725***
0.724***
0.724***
(4.52)
(4.52)
(4.43)
(4.43)
(5.72)
(5.72)
Inflation
0.003
0.003
−0.003
−0.003
−0.004
−0.004
(1.33)
(1.33)
(0.25)
(0.25)
(0.73)
(0.73)
Corruption
0.171*** (3.11)
0.171*** (3.12)
0.257*** (4.07)
0.257*** (4.07)
0.259*** (3.63)
0.259*** (3.63)
Corruption * aid
0.008
0.008
−0.001***
−0.001***
−0.001**
−0.001*
(1.55)
(1.55)
(3.74)
(3.74)
(1.99)
(1.94)
Aid * aid
−0.015***
−0.015***
−0.013*
−0.013*
−0.004*
−0.004*
(5.14)
(5.14)
(1.76)
(1.76)
(1.82)
(1.82)
Investment
0.01***
0.01***
0.06***
0.06***
0.059
0.059
(4.61)
(4.61)
(3.53)
(3.53)
(1.03)
(1.03)
World trade
0.04
0.04
0.032*
0.032*
0.043*
0.043*
(1.16)
(1.16)
(1.73)
(1.73)
(1.77)
(1.77)
Broad money supply
0.002***
0.002***
0.001***
0.001***
0.001**
0.001***
(4.45)
(4.45)
(4.53)
(4.53)
(2.51)
(2.59)
Trend
−0.001*
−0.001*
−0.002***
−0.002***
−0.001
−0.001
(1.68)
(1.68)
(3.47)
(3.47)
(1.52)
(1.52)
War
—
—
−0.109***
−0.109***
−0.109***
−0.109***
(4.01)
(4.01)
(4.56)
(4.56)
UEMOA
—
—
−0.198***
−0.198***
−0.200***
−0.200***
(2.86)
(2.86)
(3.02)
(3.02)
Corruption_1994
—
—
—
—
0.018
0.018
(1.25)
(1.25)
c
1.098***
1.098***
0.999
0.999
0.985***
0.985***
(3.12)
(3.12)
(1.03)
(1.03)
(4.51)
(4.51)
Number of countries
14
14
14
14
14
14
Observations
419
419
419
419
419
419
Adjusted
0.79
0.79
0.80
0.80
0.80
0.80
F statistics
359***
359***
331***
331***
304***
304***
***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.
