|(12)<br>(13)<br>(14)|0.003<br>0.006<br>-0.07<br>(0.002)<br>(0.04)<br>(0.03)<br>**0.09****<br>**0.10***<br>**0.06***<br>**(0.04)**<br>**(0.05)**<br>**(0.03)**<br>-0.01<br>-0.01<br>0.06<br>(0.04)<br>(0.06)<br>(0.05)<br>-0.01<br>-0.01<br>0.03<br>(0.03)<br>(0.04)<br>(0.02)<br>-0.009<br>-0.01<br>0.006<br>(0.01)<br>(0.01)<br>(0.01)<br>0.01<br>0.02<br>0.05**<br>(0.03)<br>(0.04)<br>(0.02)<br>-0.07<br>0.03<br>(0.10)<br>(0.06)<br>0.005<br>(0.02)<br>* -0.87***<br>-0.64<br>-0.38<br>(0.22)<br>(0.44)<br>(0.31)<br>277<br>267<br>263<br>94<br>92<br>92<br>0.26<br>0.58<br>0.275<br>0.002<br>0.02<br>0.007<br>12<br>12<br>38<br>and levels as log population<br>as additional instruments.|
|---|---|
|(10)<br>(11)<br>**nd System GMM**|-0.001<br>0.01<br>(0.02)<br>(0.02)<br> **0.06*****<br>**0.07****<br>**(0.01)**<br>**(0.03)**<br>0.006<br>-0.02<br>(0.05)<br>(0.05)<br>0.003<br>-0.008<br>(0.02)<br>(0.03)<br>-0.007<br>(0.01)<br>* -0.63*** -0.75**<br>(0.18)<br>(0.25)<br>281<br>277<br>95<br>94<br>0.40<br>0.40<br>0.002<br>0.002<br>10<br>10<br>g lagged growth rates<br>pulation and log area|
|System GMM<br>(8)<br>(9)<br>**year panel fixed effect a**<br>**07)**<br>P per capita growth)|-0.007<br>-0.003<br>(0.01)<br>(0.02)<br>**0.07*****<br>**0.05*****<br>**(0.01)**<br>**(0.01)**<br>0.01<br>(0.06)<br>-0.67***<br>-0.47**<br>(0.16)<br>(0.150<br>320<br>315<br>108<br>106<br>0.37<br>0.319<br>0.002<br>0.002<br>7<br>10<br>tem-GMM estimator usin<br>stimation also uses log po<br>s.|
|(2)<br>(3)<br>(4)<br>(5)<br>(6)<br>(7)<br>**Table 5. Dynamic service EXPY and growth: 3**<br>**(1999-20**<br>(dependent variable – GD|-0.06***<br>-0.06*** -0.06*** -0.06*** -0.06*** -0.07***<br>(0.01)<br>(0.01)<br>(0.01)<br>(0.01)<br>(0.01)<br>(0.01)<br>**0.07*****<br>**0.08*** 0.06*** 0.06*** 0.06*** 0.07*****<br>**(0.01)**<br>**(0.01)**<br>**(0.01)**<br>**(0.01)**<br>**(0.01)**<br>**(0.01)**<br>0.08***<br>0.08*** 0.05*<br>0.05*<br>0.04<br>0.02<br>(0.03)<br>(0.03)<br>(0.03)<br>(0.03)<br>(0.03)<br>(0.03)<br>0.008<br>0.006<br>0.005<br>0.008<br>0.005<br>(0.009)<br>(0.009)<br>(0.009)<br>(0.01)<br>(0.01)<br>0.05*** 0.05*** 0.05*** 0.05***<br>(0.01)<br>(0.01)<br>(0.01)<br>(0.01)<br>0.004*** 0.003<br>0.002<br>(0.009)<br>(0.009)<br>(0.009)<br>0.002<br>0.005<br>(0.01)<br>(0.01)<br>0.01<br>(0.009)<br>-0.32***<br>-0.40*** -0.43*** -0.43<br>-0.42*** -0.51***<br>(0.11)<br>(0.12)<br>(0.11)<br>(0.11)<br>(0.14)<br>(0.14)<br>0.24<br>0.27<br>0.35<br>0.35<br>0.35<br>0.38<br>315<br>281<br>277<br>277<br>367<br>263<br>106<br>95<br>94<br>94<br>92<br>92<br>0.92<br>0.91<br>0.93<br>0.93<br>0.93<br>0.95<br>ects include dummies for countries. GMM is the Blundell-Bond Sys<br>10% level ** Significant at 5% level *** instruments. The GMM e<br>* Significant at 1% level. Robust t-statistics are given in parenthese|
|FE<br>(1)|-0.06***<br>(0.01)<br>**0.10*****<br>**(0.01)**<br>log financial development<br>Trade (% of GDP)<br>Rule of Law<br>log service value added (% of GDP)<br>log lag initial goods EXPY<br>-0.41***<br>(0.10)<br>R-squared<br>0.21<br>320<br>Countries<br>108<br>Rho<br>0.95<br>Number of Instruments<br>Note: All equations include period dummies. Fixed eff<br>and log area as additional instruments. * Significant at<br>* Significant at 10% level ** Significant at 5% level **<br>(p) value<br>Second-order serial<br>correlation (p-value)<br>log lag initial GDP/cap<br>**log lag initial service EXPY**<br>log human capital<br>Constant<br>observations<br>Hansen J-statistic|

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