**Table 9**

# **Cross-national Growth Regressions 1994-2004, Including Type of Economy Dummies**

||(1)<br>**OLS**|(2)<br>**OLS**|(3)<br>**OLS**|(4)<br>**OLS**|(5)<br>**OLS**|(6)<br>**IV**|(7)<br>**IV**|(8)<br>**IV**|(9)<br>**IV**|(10)<br>**IV**|
|---|---|---|---|---|---|---|---|---|---|---|
|Lo of GDP c 1994|-0.016*|-0.023***|-0.026***|-0.026***|-0.026***|-0.008|-0.013|-0.024***|-0.025***|-0.023***|
|g p|(0.008)|(0.006)|(0.007)|(0.006)|(0.006)|(0.015)|(0.018)|(0.007)|(0.007)|(0.008)|
|L f EXPY 1994|-0.001|0.003|-0.010|-0.006|-0.006|-0.101|-0.127|-0.016|0.015|-0.052|
|og o|(0.022)|(0.022)|(0.024)|(0.024)|(0.025)|(0.192)|(0.251)|(0.092)|(0.082)|(0.112)|
|Log of EXPY 1994 * Dummy Low- Income|0.051**|0.035|0.045*|0.042*|0.045**|0.151|0.156|0.049|0.021|0.086|
|Economy|(0.021)|(0.021)|(0.022)|(0.022)|(0.022)|(0.183)|(0.234)|(0.086)|(0.078)|(0.105)|
|Log of EXPY 1994 * Dummy Lower-Middle-|0.061**|0.074***|0.083***|0.081***|0.082***|0.205|0.197|0.083|0.055|0.119|
|Income Economy|(0.030)|(0.026)|(0.027)|(0.028)|(0.028)|(0.208)|(0.250)|(0.094)|(0.085)|(0.114)|
|Log of EXPY 1994 * Dummy Upper-Middle-|0.038|-0.003|0.015|0.015|0.017|0.093|0.110|0.009|-0.026|0.057|
|Income Economy|(0.027)|(0.029)|(0.033)|(0.032)|(0.030)|(0.188)|(0.264)|(0.114)|(0.099)|(0.135)|
|Dumm Lo- Income Econom|-0.494**|-0.348*|-0.439**|-0.417**|-0.442**|-1.429|-1.478|-0.477|-0.220|-0.823|
|y w y|(0.193)|(0.194)|(0.206)|(0.203)|(0.199)|(1.732)|(2.205)|(0.819)|(0.739)|(0.986)|
|D LMiddlI E|-0.584**|-0.705***|-0.784***|-0.766***|-0.772***|-1.933|-1.859|-0.785|-0.516|-1.124|
|ummy ower-e-ncome conomy|(0.278)|(0.241)|(0.251)|(0.256)|(0.257)|(1.961)|(2.365)|(0.882)|(0.802)|(1.068)|
|D UMiddlI E|-0.367|0.007|-0.151|-0.156|-0.177|-0.896|-1.066|-0.098|0.234|-0.551|
|ummy pper-e-ncome conomy|(0.249)|(0.270)|(0.304)|(0.300)|(0.275)|(1.791)|(2.506)|(1.077)|(0.938)|(1.272)|
|f d hl 1||0.009***|0.007**|0.008**|0.008**||0.013|0.008*|0.008**|0.009*|
|Log o % secun. scoo att. 985||(0.003)|(0.003)|(0.003)|(0.003)||(0.009)|(0.004)|(0.004)|(0.005)|
|Rl f L Id 1996|||0.007*|0.007*|0.007**|||0.007|0.005|0.009|
|ue o aw nex|||(0.004)|(0.004)|(0.003)|||(0.005)|(0.005)|(0.007)|
|Domestic credit provided by banking sector, % of||||-0.000|-0.007||||-0.000|-0.007|
|GDP||||(0.000)|(0.027)||||(0.000)|(0.031)|
|Diversification (1 - Herfindahl Index)|||||-0.000<br>(0.000)|||||-0.000<br>(0.000)|
|Ctt|0.190|0.191|0.329|0.299|0.309|1.068|1.319|0.376|0.098|0.715|
|onsan|(0.175)|(0.184)|(0.205)|(0.207)|(0.204)|(1.727)|(2.215)|(0.853)|(0.763)|(1.023)|
|Observations|73|59|59|59|59|71|58|58|58|58|
|R-squared|0.31|0.42|0.46|0.47|0.47|0.05|0.07|0.45|0.45|0.43|
|First stage F-statistic of excluded inst. p-value<br>(H0: weakly identified)||||||0.000|0.625|0.715|0.628|0.736|
|<br>Hansen J statistic p-value (H0: overidentified)||||||0.517|0.053|0.029|0.037|0.037|
|Stock-Wright S-statistic p-value (H0: all|||||||||||
|<br>endogenous regressors==0 and overid. rest. valid,<br>weak-instrument-robust inference)||||||0.336|0.062|0.040|0.047|0.045|
|Robust standard errors in parentheses<br>* significant at 10%; ** significant at 5%; *** significant at 1%<br>Instruments for IV regressions: log of population 1994 and log of lan|d area||||||||||

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