**Table 14: Results with Components of Productive Expenditures (panel OLS)**

|**_Dependent variable: Growth rate of GDP pe_**|**_r capita_**<br>Components<br>of productive<br>expenditure||||
|---|---|---|---|---|
||and lagged<br>growth rate of|Education<br>expenditure|Health<br>expenditure|Trasportation<br>expenditure|
||GDP per<br>capita|with country<br>effects|with country<br>effects|with country<br>effects|
|Private investment<br>(% of GDP)|0.087<br>(1.438)|0.177<br>(2.478)**|0.139<br>(2.074)**|0.121<br>(1.95)*|
|Initial human capital|-0.002<br>(-0.15)|-0.005<br>(-0.104)|-0.026<br>(-1.004)|-0.040<br>(-1.883)*|
|Tax revenue<br>(% of GDP)|-0.161<br>(-1.355)|-0.377<br>(-2.667)***|-0.332<br>(-2.429)**|-0.402<br>(-2.975)***|
|Other revenue<br>(% of GDP)|-0.537<br>(-3.975)***|-0.484<br>(-2.986)***|-0.509<br>(-3.346)***|-0.529<br>(-3.599)***|
|Education expenditure (-1)<br>(% of GDP)|0.442<br>(1.013)|-5.981<br>(-2.193)**|-1.447<br>(-2.319)**|-0.791<br>(-1.329)|
|Health expenditure (-1)<br>(% of GDP)|0.349<br>(0.537)|-1.328<br>(-0.928)|-17.460<br>(-3.271)***|0.273<br>(0.253)|
|Transportation expenditure (-1)<br>(% of GDP)|0.317<br>(0.763)|0.342<br>(0.707)|-0.120<br>(-0.266)|-5.932<br>(-2.931)***|
|Other productive expenditure (-1)<br>(% of GDP)|0.829<br>(3.781)***|0.967<br>(3.488)***|0.793<br>(2.897)***|0.870<br>(3.52)***|
|Non-productive expenditure (-1)<br>(% of GDP)|0.389<br>(2.08)**|0.413<br>(1.587)|0.419<br>(1.671)*|0.238<br>(1.047)|
|Budget surplus<br>(% of GDP)|0.410<br>(3.52)***|0.428<br>(3.278)***|0.347<br>(2.797)***|0.464<br>(3.47)***|
|Inflation - consumer price index|-0.227<br>(-5.521)***|-0.274<br>(-6.61)***|-0.283<br>(-7.198)***|-0.254<br>(-6.402)***|
|Growth rate of GDP per capita (-1)|0.357<br>(3.391)***|0.169<br>(1.572)|0.159<br>(1.536)|0.135<br>(1.238)|
|Botswana-Education expenditure (-1)<br>(% of GDP)|...|5.577<br>(2.636)***|...|...|
|Korea-Education expenditure (-1)<br>(% of GDP)|...|3.602<br>(1.249)|...|...|
|Malaysia-Education expenditure (-1)<br>(% of GDP)|...|5.805<br>(2.489)**|...|...|
|Mauritius-Education expenditure (-1)<br>(% of GDP)|...|5.448<br>(2.486)**|...|...|
|Singapore-Education expenditure (-1)<br>(% of GDP)|...|4.407<br>(1.54)|...|...|
|Thailand-Education expenditure (-1)<br>(% of GDP)|...|4.385<br>(2.359)**|...|...|
|Botswana-Health expenditure (-1)<br>(% of GDP)|...|...|20.872<br>(4.046)***|...|
|Korea-Health expenditure (-1)<br>(% of GDP)|...|...|10.741<br>(1.18)|...|
|Malaysia-Health expenditure (-1)<br>(% of GDP)|...|...|20.165<br>(3.705)***|...|
|Mauritius-Health expenditure (-1)<br>(% of GDP)|...|...|17.541<br>(3.434)***|...|
|Singapore-Health expenditure (-1)<br>(% of GDP)|...|...|17.519<br>(3.009)***|...|
|Thailand-Health expenditure (-1)<br>(% of GDP)|...|...|14.857<br>(3.158)***|...|
|Botswana-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|6.538<br>(3.384)***|
|Korea-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|5.172<br>(1.933)*|
|Malaysia-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|8.181<br>(3.735)***|
|Mauritius-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|6.731<br>(3.316)***|
|Singapore-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|6.084<br>(2.337)**|
|Thailand-Transportation expenditure (-1)<br>(% of GDP)|...|...|...|4.112<br>(2.455)**|
|No. of observations<br>Adjusted R2<br>Note: The estimation method is the ordinary le<br>period. t-statistics are given in parenthesis. * in<br>1% significance level. These significance level<br>coefficients.|120<br>0.447<br>ast squares for panel<br>dicates 10% significa<br>s are equal to one mi|120<br>0.519<br>data. Annual data ar<br>nce level, ** indicate<br>nus the probability of|120<br>0.549<br>e used. (-1) indicates<br>s 5% significance lev<br>rejecting the null hyp|120<br>0.521<br>variables lagged one<br>el, and *** indicates<br>othesis of zero|

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