Table 9: Variables affecting the passthrough between growth in GDP per capita and household welfare

||Survey me<br>(N=5|an to GDP<br>75)|Survey me<br>(N=1|an to GDP<br>,604)|Poverty<br>(N=|to GDP<br>575)|
|---|---|---|---|---|---|---|
||(1|)<br>|(2|)<br>|(|3)<br>|
||Coefficient|Sharpened<br>qvalue|Coefficient|Sharpened<br>qvalue|Coefficient|Sharpened<br>qvalue|
|**current values**<br>|||||||
|Net primary school enrolment|0.014|0.14|0.008|0.28|-0.04**|0.044|
|Literacy rate, youth total (% of people<br>ages 15-24)|0.018|0.208|0.013*|0.076|-0.068***|0.001|
|Forest rents (% of GDP)|-0.039***|0.003|-0.023|0.229|0.103***|0.003|
|Mineral rents (% of GDP)|-0.103**|0.037|-0.011|0.945|0.069|0.81|
|Ores and metals exports (% of<br>merchandise exports)|-0.028**|0.033|-0.003|0.945|0.011|0.933|
|Access to electricity (% of population)|0.008**|0.037|0.004|0.237|-0.026***|0.003|
|People using at least basic drinking water<br>services (% of population)|0.013*|0.085|0.007|0.334|-0.03|0.215|
|People using at least basic sanitation<br>services (% of population)|0.007|0.208|0.004|0.441|-0.031**|0.047|
|Number of deaths from conflicts per<br>1000 people|-7.475*|0.066|-4.527|0.222|12.486|0.563|
|**lagged 5 years**|||||||
|Agriculture, value added (% of GDP)|-0.016**|0.041|-0.01|0.173|0.014|0.491|
|Employment in services (% of total<br>employment) (modeled ILO estimate)|0.014*|0.099|0.006|0.099|-0.026|0.099|
|Ores and metals exports (% of<br>merchandise exports)|-0.028***|0.008|-0.007|0.008|0.008|0.008|
|**lagged 10 years**|||||||
|Agriculture, value added (% of GDP)|-0.019***|0.004|-0.011*|0.055|0.037|0.151|
|Industry, value added (% of GDP)|0.019**|0.031|0.012|0.12|-0.037|0.176|
|Employment in services (% of total<br>employment) (modeled ILO estimate)|0.018*|0.061|0.005|0.507|-0.03|0.176|
|Employment in industry, (% of total<br>employment) (modeled ILO estimate)|0.05***|0.001|0.016*|0.096|-0.037|0.262|
|Ores and metals exports (% of<br>merchandise exports)|-0.022*|0.063|-0.004|0.79|0.005|0.654|
|People using at least basic sanitation<br>services (% ofpopulation)<br>Notes:Numbers in the table show the estimated|0.009*<br>coefficients of|0.095<br>the interaction|0.007*<br>term between|0.082<br>rowth in GDP|-0.034<br>per capita and|0.151<br>the|

<u>Notes: Numbers in the table show the estimated coefficients of the interaction term between growth in GDP per capita and the</u> corresponding variable listed in the first column, as well as the Anderson’s sharpened q values to control for multiple hypotheses testing. “Current values” indicates that the mediating variable is measured at the beginning year of the spell. “Lagged 5 years” indicates that the mediating variable is measured five years prior to the beginning year of the spell. “Lagged 10 years” indicates that the mediating variable is measured ten years prior to the beginning year of the spell. All regressions include regional dummies to control for time-invariant omitted variables at the regional level. In the regressions of survey means on GDP per capita ((1) and (2)), a positive coefficient indicates that higher levels of the mediating variable amplify the effect of GDP growth on household consumption (and vice versa). In the regression of poverty on GEP per capita (3), a positive coefficient indicates that higher levels of the mediating variable weaken the effect of GDP growth on poverty. ***: Statistically significant at 1%; **: Statistically significant at 5%; *: Statistically significant at 10%.

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