**Table 16: Results with Components of Productive Expenditures (Cross-Section SURE with 3-year averages)**

|**_Dependent variable: Growth rate of GDP pe_**|**_r capita_**<br>Components of||||
|---|---|---|---|---|
||<br>productive<br>expenditure and|Education|Health|Trasportation|
||lagged growth<br>rate of GDP per<br>capita|expenditure<br>with country<br>effects|expenditure<br>with country<br>effects|expenditure<br>with country<br>effects|
|Initial human capital|0.036<br>(2.964)***|0.014<br>(0.37)|0.071<br>(2.779)**|0.003<br>(0.106)|
|Tax revenue<br>(% of GDP)|-0.028<br>(-0.192)|-0.088<br>(-0.432)|-0.464<br>(-2.469)**|-0.103<br>(-0.577)|
|Other revenue<br>(% of GDP)|-0.659<br>(-6.596)***|-0.967<br>(-5.825)***|-0.617<br>(-5.833)***|-0.478<br>(-4.519)***|
|Education expenditure (-1)<br>(% of GDP)|2.295<br>(3.729)***|...|...|...|
|Health expenditure (-1)<br>(% of GDP)|0.537<br>(0.832)|...|...|...|
|Transportation expenditure (-1)<br>(% of GDP)|0.796<br>(1.476)|...|...|...|
|Other productive expenditure (-1)<br>(% of GDP)|0.159<br>(0.625)|-0.36<br>(-1.067)|0.138<br>(0.553)|0.163<br>(0.591)|
|Non-productive expenditure (-1)<br>(% of GDP)|-0.195<br>(-0.885)|0.581<br>(1.461)|0.468<br>(1.585)|-0.225<br>(-1.212)|
|Budget surplus<br>(% of GDP)|0.699<br>(6.664)***|0.861<br>(5.805)***|0.635<br>(4.85)***|0.586<br>(3.518)***|
|Inflation - consumer price index|-0.001<br>(-1.524)|0.000<br>(-0.1)|-0.002<br>(-5.034)***|-0.002<br>(-2.567)**|
|Growth rate of GDP per capita (-1)|-0.083<br>(-0.464)|-0.253<br>(-1.386)|0.168<br>(0.983)|-0.230<br>(-1.216)|
|Botswana-Education expenditure (-1)<br>(% of GDP)|...|3.451<br>(5.057)***|...|...|
|Korea-Education expenditure (-1)<br>(% of GDP)|...|2.632<br>(1.862)*|...|...|
|Malaysia-Education expenditure (-1)<br>(% of GDP)|...|2.814<br>(3.923)***|...|...|
|Mauritius-Education expenditure (-1)<br>(% of GDP)|...|1.849<br>(2.274)**|...|...|
|Singapore-Education expenditure (-1)<br>(% of GDP)|...|4.669<br>(3.252)***|...|...|
|Thailand-Education expenditure (-1)<br>(% of GDP)|...|2.290<br>(3.565)***|...|...|
|Botswana-Health expenditure (-1)<br>(% of GDP)|...|...|7.502<br>(4.514)***|...|
|Korea-Health expenditure (-1)<br>(% of GDP)|...|...|-21.882<br>(-2.836)**|...|
|Malaysia-Health expenditure (-1)<br>(% of GDP)|...|...|2.747<br>(1.984)*|...|
|Mauritius-Health expenditure (-1)<br>(% of GDP)|...|...|-0.507<br>(-0.612)|...|
|Singapore-Health expenditure (-1)<br>(% of GDP)|...|...|-0.816<br>(-0.472)|...|
|Thailand-Health expenditure (-1)<br>(% of GDP)|...|...|-0.623<br>(-0.36)|...|
|Botswana-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|1.476<br>(1.682)|
|Korea-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|-0.533<br>(-0.336)|
|Malaysia-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|1.949<br>(1.933)*|
|Mauritius-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|0.692<br>(0.574)|
|Singapore-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|0.630<br>(0.544)|
|Thailand-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|-0.883<br>(-0.797)|
|No. of observations<br>Adjusted R2<br>Note: The estimation method isthe cross‐sectio<br>lagged one period. t-statistics are given in par<br>indicates 1% significance level. These signific<br>zero coefficients.|34<br>0.393<br>n seeminly unrelated regr<br>enthesis. * indicates 10<br>ance levels are equal to|34<br>0.665<br>ession. 3-year avera<br>% significance level,<br>one minus the prob|34<br>0.708<br>ges are used. (-1) ind<br>** indicates 5% signifi<br>ability of rejecting the|34<br>0.549<br>icates variables<br>cance level, and ***<br>null hypothesis of|

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