Table 10 Impact of Changes in Institutional Quality on the Quintile Income Groups Table 12 Impact ofFDI on the Quintile Income Groups

|The Late 1990s-2000s||||||The Late 1990s-2000s||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Dependent Variable: PeriodAverage Growth R|ate ofPerCapita|Income ofthe|Quintile (real|terms)||Dependent Variable: PeriodAverag|e Growth Rate of|PerCapita Incom|e ofthe Quintile|(real terms)||
||ie3)|Q)|GB)|(4)|(5)||qd)|2)|GB)|(4)|(5)|
||Quintile 1|Quintile2|Quintile3<br>—|Quintile4<br>=|Quintile 5||Quintile 1|Quintile 2|Quintile 3|Quintile4|Quintile 5|
|PeriodAverage Growth Rateof|1.1674***|= 1.0712***|= 1,0526***|= 1.0261***|— 0,9668***|PeriodAverage Growth Rateof|1.2936***|1.1084***|1.0745***|1.0304***|0.9655***|
|Per Capita Income #|(13.74)|(23.35)|(30.87)|(39.62)|(25.80)|Per Capita Income #|(5.05)|(7.16)|(10.49)|(17.00)|(10.84)|
|PeriodAverage Rate ofChange of|-0.1892|-0.1067|-0.0622|-0.0241|0.0506|PeriodAverage FDI/GDP|-0.0004|-0.0002|-0.0003|-0.0003|0.0001|
|Institutional Quality(ICRG Capacity)|(1.59)|(1.48)|(1.29)|(0.82)|(0.94)||(0.28)|(0.18)|(0.41)|(0.61)|(0.19)|
|CrisesDummy|-0.0028|-0.0008|-0.0002|—-0.000009|-0.0005|CrisesDummy|0.0018|0.0007|0.0014|0.0015|-0.0019|
||(0.66)|(0.31)|(0.13)|(0.01)|(0.26)||(0.39)|(0.24)|(0.63)|(0.94)|(0.88)|
|No. ofObservations|126|126|126|126|126|No. ofObservations|156|156|156|156|156|
|R-squared|0.45|0.70|0.82|0.90|0.82|R-squared|0.29|0.54|0.71|0.85|0.74|

Table 11 Impact of Changes in Trade on the Quintile Income Groups Table 13 Impact ofRemittance on the Quintile Income Groups

|The Late 1990s-2000s||||||The Late 1990s-2000s||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Dependent Variable: PeriodAverage Growth Rat|e ofPerCapita|Income ofthe|Quintile (real t|erms)||Dependent Variable: PeriodAverage|Growth Rate of|PerCapita Income|ofthe Quintile (|real terms)||
||a)|2)|GB)|(4)|(5)||dy)|(2)|GB)|(4)|(5)|
||Quintile 1<br>=|Quintile2<br>|= Quintile3_—|Quintile4<br>=|Quintile 5||Quintile 1|Quintile 2|Quintile 3|Quintile4|Quintile 5|
|PeriodAverage Growth Rateof|1.3090***|=1.1339***|— 1.0824*** —|1.0332***|0.9421***|PeriodAverage Growth Rateof|1.2004***|1.0504***|1.0264***|1.0028***|0.9889***|
|Per Capita Income #|(7.90)|(11.70)|(17.59)|(27.85)|(16.89)|Per Capita Income #|(7.57)|(10.45)|(14.88)|(22.81)|(17.45)|
|PeriodAverage Growth Rate ofTrade/GDP|-0.0474|-0.0300|-0.0270|-0.0284|0.0357|PeriodAverage Remittance/GDP|0.0003|0.0003|0.0002|0.00009|-0.00009|
||(0.40)|(0.45)|(0.61)|(1.02)|(0.90)||(0.63)|(0.93)|(0.92)|(0.87)|(0.56)|
|Crises Dummy|-0.0040|-0.0004|0.0004|0.0005|-0.0012|Crises Dummy|-0.0024|0.0001|0.0007|0.0007|-0.0017|
||(0.72)|(0.11)|(0.16)|(0.34)|(0.53)||(0.50)|(0.04)|(0.31)|(0.48)|(0.83)|
|No. of Observations|136|136|136|136|136|No. of Observations|151|151|151|151|151|
|R-squared|0.34|0.56|0.72|0.86|0.72|R-squared|0.33|0.56|0.72|0.85|0.75|
|Notes:<br>i)Absolutevalueoft-statisticscalculatedwit|hWhite-corrected|standarderror|sisinparenthese|s.||||||||

*, ** and *** indicate significance at the 10%, 5% and 1% levels, respectively.

ii) Panel two-stage least squares methods is used for these analyses.

iii) # denotes variable is instrumented with the initial level and period average growth rate of the previous spell.

Source: Authors’ compilation