# **TABLE 4: INFRASTRUCTURE STOCKS AND ECONOMIC GROWTH: PANEL REGRESSION ANALYSIS USING** **<u>DIFFERENT CATEGORIES OF INFRASTRUCTURE.</u>**

_Dependent Variable: Growth in GDP per Capita_ _Estimation Technique: GMM-IV System Estimator -_ _<u>Sample of 121 countries, 1960 2000 (5 year averaged rate)</u>_

|_Sample of 121 countr_<br>**Variable**|_ies, 1960- 200_<br>**{1}**|_0 (5 year avera_<br>**{2}**|_ged rate)_<br>**{3}**|**{4}**|**{5}**|**{6}**|**{7}**|**{8}**|**{9}**|
|---|---|---|---|---|---|---|---|---|---|
||0.2000**|0.2291**|0.1844**|<br>0.1430**|0.1854**|0.2905**|0.2767**|0.3278**|0.3326**|
|**Constant**|(0.06)|(0.07)|(0.05)|(0.06)|(0.06)|(0.06)|(0.07)|(0.07)|(0.07)|
|**Output per**|-0.0300**|-0.0355**|-0.0232**|<br>-0.0194**|-0.0203**|-0.04121**|-0.0405**|-0.441**|-0.0460**|
|**capita (in logs)**|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|
||0.0111*|0.0093*|0.0098*|<br>0.0124**|0.0118**|0.0083|0.0062|<br>0.0050|0.0019|
|**Human Capital**|(0.01)|(0.01)|(0.01)|(0.00)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|
||0.0040*|0.0046*|0.0032*|<br>0.0004|0.0001|0.0026*|0.0029*|<br>0.0023|0.0020|
|**Financial Depth**|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|
|**Government**|-0.0221**|-0.0208*|-0.0262**|<br>-0.0205**|-0.0218**|-0.0231**|-0.0257**|<br>-0.0199**|-0.0219**|
|**Burden**|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|
|**Trade**|0.0170|0.0135|0.0137|<br>0.0240**|0.0269**|0.0187*|0.0192|<br>0.0279**|0.0262*|
|**Openness**|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|(0.01)|
||0.0035**|0.0041**|0.0040**|<br>0.0041|0.0028**|0.0044**|0.0041**|<br>0.0023**|0.0028**|
|**Governance**|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|
||-0.0232**|-0.0240**|-0.0250**|<br>-0.0229**|-0.0192**|-0.0242**|-0.0271**|<br>-0.0207**|-0.0234**|
|**Inflation**|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.01)|(0.00)|(0.00)|
|**RER**|-0.0013*|0.0008|-0.0010**|<br>0.0031|0.0030|-0.0033|0.0033|-0.0014|-0.0413**|
|**Overvaluation**|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|(0.00)|90.00)|(0.02)|
|**Terms of Trade**|0.0219|0.0229|0.0428**|<br>0.0353**|0.0424**|0.0457**|0.0429**|<br>0.0497**||
|**Shocks**|(0.02)|(0.02)|(0.02)|(0.02)|(0.02)|(0.02)|(0.02)|(0.01)||
||0.0157**|||||0.0130**|||0.0164**|
|**Main Lines**|(0.01)|||||(0.00)|||(0.01)|
|**Main Lines**||0.0187**|||||0.0153**|0.0095|0.0082|
|**+Cell**||(0.01)|||||(0.01)|(0.00)|(0.01)|
||||0.0120*<br>|||0.0102<br>|0.0129*<br>|||
|**Power**|||(0.01)|||(0.01)|(0.01)|||
|||||0.0070**||0.0084**|0.0093**|0.0072**|0.0077**|
|**Roads**||||(0.00)||(0.00)|(0.00)|(0.00)|(0.00)|
||||||0.0077**|||||
|**Roads + Rails**<br>**----------------------------**|**---------------------**|**-------------------**|**------------------**|**-----------------**|<br>(0.00)<br>**-----------------**|**-------------------**|**------------------**|**--------------------**|**------------------**|
|<br>**Observation**|<br>338|<br>332|<br>334|<br>335|<br>326|<br>331|<br>325|<br>322|<br>316|
|**R**2**|0.417|0.411|0.415|0.393|0.396|0.387|0.39|0.413|0.411|
|**Specification**<br>||||||||||
|**Test (p-value)**||||||||||
|<br>**-Sargan Test**|{0.45}|{0.33}|{0.49}|{0.72}|{0.73}|{0.63}|{0.44}|{0.62}|{0.62}|
|**- 2**<br>**nd Order**||||||||||
|**Correlation**|{0.50}|{0.38}|{0.54}|{0.78}|{0.83}|{0.79}|{0.63}|{0.66}|{0.72}|
|Number inparenthesi<br>_Source: Calderon an_|s belowthe coe<br>_d Serven, 2004_|fficient estima<br>_b_|tes are standa|rd errors*(**|)implies tha|t thevariableis|significant at|the10(5) perc|entlevel.|

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