Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS
Table 8
Regression estimates: random effects specifications of bmod2. Dependent variable: income per capita (in natural logarithm).
Independent variables
I
III
III
WRSE
PCSE
WRSE
PCSE
WRSE
PCSE
Aid
−0.019***
−0.019***
−0.013
−0.013
−0.004**
−0.004**
(4.11)
(4.11)
(1.12)
(1.11)
(2.31)
(2.31)
Initial income
0.710***
0.710***
0.969***
0.969***
0.734***
0.734***
(5.23)
(5.23)
(4.41)
(4.41)
(4.85)
(4.85)
Inflation
−0.007
−0.007
0.006**
0.006**
−0.001**
−0.001**
(1.08)
(1.08)
(1.72)
(1.72)
(1.81)
(1.81)
Corruption
0.148***
0.148***
0.029
0.029
0.200***
0.200***
(3.39)
(3.39)
(1.04)
(1.04)
(2.82)
(2.82)
Corruption * aid
0.0001*
0.0001*
0.003
0.003
−0.06
−0.06
(1.67)
(1.68)
(1.33)
(1.33)
(1.22)
(1.22)
Aid * aid
0.004
0.004
−0.001
−0.001
−0.005**
−0.005**
(1.42)
(1.42)
(1.13)
(1.13)
(2.07)
(2.07)
Investment
0.01
0.01
−0.04***
−0.04***
0.02
0.02
(0.79)
(0.79)
(3.31)
(3.31)
(1.05)
(1.04)
World trade
0.002***
0.002***
−0.003
−0.003*
0.007*
0.007*
(5.53)
(5.53)
(1.61)
(1.64)
(1.67)
(1.67)
Broad money supply
0.002
0.002
2.788***
2.788***
0.001***
0.001***
(0.25)
(0.25)
(4.81)
(4.81)
(3.39)
(3.39)
Trend
−0.002
−0.002*
−0.034***
−0.034***
−0.034
−0.034
(1.41)
(1.69)
(3.12)
(3.12)
(1.07)
(1.07)
War
—
—
0.089
0.089
−0.122***
−0.122***
(1.61)
(1.61)
(2.97)
(2.97)
UEMOA
—
—
−0.003
−0.003*
−0.167***
−0.167***
(1.61)
(1.68)
(2.57)
(2.57)
Corruption_1994
—
—
—
—
0.012*
0.012
(1.65)
(1.62)
c
1.159***
1.159***
−14.151***
−14.151***
1.048***
1.048***
(4.17)
(4.17)
(5.55)
(5.55)
(5.41)
(5.41)
Number of countries
14
14
14
14
14
14
Observations
406
406
406
406
406
406
Adjusted
0.68
0.68
0.75
0.75
0.74
0.74
F statistics
257***
257***
261***
261***
241***
241***
***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.
