**Table 15: Results with Components of Productive Expenditures (panel OLS with 3-year averages)**

|**_Dependent variable: Growth rate of GDP per_**|**_capita_**<br>||||
|---|---|---|---|---|
||Components of<br>productive<br>||||
||expenditure and<br>lagged growth<br>rate of GDP per<br>capita|Education<br>expenditure<br>with country<br>effects|Health<br>expenditure<br>with country<br>effects|Trasportation<br>expenditure<br>with country<br>effects|
|Initial human capital|0.043<br>(2.224)**|0.018<br>(0.294)|0.078<br>(1.555)|0.014<br>(0.372)|
|Tax revenue<br>(% of GDP)|-0.078<br>(-0.329)|-0.18<br>(-0.586)|-0.490<br>(-1.494)|-0.186<br>(-0.556)|
|Other revenue<br>(% of GDP)|-0.654<br>(-4.252)***|-1.013<br>(-4.593)***|-0.649<br>(-3.767)***|-0.493<br>(-2.574)**|
|Education expenditure (-1)<br>(% of GDP)|2.687<br>(2.526)**|...|...|...|
|Health expenditure (-1)<br>(% of GDP)|0.321<br>(0.296)|...|...|...|
|Transportation expenditure (-1)<br>(% of GDP)|0.916<br>(1.176)|...|...|...|
|Other productive expenditure (-1)<br>(% of GDP)|-0.075<br>(-0.157)|-0.432<br>(-0.853)|0.137<br>(0.316)|0.211<br>(0.42)|
|Non-productive expenditure (-1)<br>(% of GDP)|-0.208<br>(-0.478)|0.624<br>(1.051)|0.368<br>(0.609)|-0.295<br>(-0.498)|
|Budget surplus<br>(% of GDP)|0.783<br>(4.741)***|0.91<br>(4.801)***|0.706<br>(3.897)***|0.608<br>(2.922)***|
|Inflation - consumer price index|-0.001<br>(-0.55)|0<br>(-0.129)|-0.003<br>(-2.948)***|-0.003<br>(-2.647)**|
|Growth rate of GDP per capita (-1)|-0.140<br>(-0.527)|-0.309<br>(-1.141)|0.107<br>(0.356)|-0.189<br>(-0.585)|
|Botswana-Education expenditure (-1)<br>(% of GDP)|...|3.681<br>(3.716)***|...|...|
|Korea-Education expenditure (-1)<br>(% of GDP)|...|2.451<br>(1.177)|...|...|
|Malaysia-Education expenditure (-1)<br>(% of GDP)|...|2.845<br>(2.83)**|...|...|
|Mauritius-Education expenditure (-1)<br>(% of GDP)|...|1.727<br>(1.403)|...|...|
|Singapore-Education expenditure (-1)<br>(% of GDP)|...|4.75<br>(2.361)**|...|...|
|Thailand-Education expenditure (-1)<br>(% of GDP)|...|2.145<br>(2.244)**|...|...|
|Botswana-Health expenditure (-1)<br>(% of GDP)|...|...|7.817<br>(3.086)***|...|
|Korea-Health expenditure (-1)<br>(% of GDP)|...|...|-24.400<br>(-1.339)|...|
|Malaysia-Health expenditure (-1)<br>(% of GDP)|...|...|2.898<br>(1.072)|...|
|Mauritius-Health expenditure (-1)<br>(% of GDP)|...|...|-0.477<br>(-0.288)|...|
|Singapore-Health expenditure (-1)<br>(% of GDP)|...|...|-1.303<br>(-0.339)|...|
|Thailand-Health expenditure (-1)<br>(% of GDP)|...|...|-0.938<br>(-0.387)|...|
|Botswana-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|2.140<br>(2.088)*|
|Korea-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|-0.428<br>(-0.144)|
|Malaysia-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|2.366<br>(1.344)|
|Mauritius-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|1.547<br>(0.782)|
|Singapore-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|0.355<br>(0.152)|
|Thailand-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|-0.634<br>(-0.416)|
|No. of observations<br>Adjusted R2<br>Note: The estimation method is the ordinary lea<br>one period. t-statistics are given in parenthesis.<br>indicates 1% significance level. These significa<br>zero coefficients.|34<br>0.492<br>st squares for panel d<br>* indicates 10% signifi<br>nce levels are equal to|34<br>0.576<br>ata. 3-year averages<br>cance level, ** indica<br>one minus the proba|34<br>0.532<br>are used. (-1) indicat<br>tes 5% significance l<br>bility of rejecting the|34<br>0.349<br>es variables lagged<br>evel, and ***<br>null hypothesis of|

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