Page 26 - Azerbaijan State University of Economics
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THE                      JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 14-27

                       Table 5: Pooled OLS regression analysis: Financial development and economic growth

                                                    Post war period                        War period                        Prewar period
                              Variables    1        2         3         4       1       2        3         4        1       2        3         4
                                        0.7875    -1.211    -4.623   19.9634   -2.330   -0.2096   39.7028   77.079   0.6067   4.4048   -43.806   -29.381
                              -constant
                                        (0.242)   (0.797)   (0.873)   (0.526)   (0.152)   (0.970)   (0.480)   (0.241)   (0.694)   (0.291)   (0.125)   (0.435)
                                        0.9994    3.3196    1.6043    3.4234   0.9595   2.8681   1.1509   3.3859   0.3975   0.7646   0.5972   0.2525
                              FD
                                       (0.053) **   (0.019) **   (0.044) **   (0.013) **   (0.480)   (0.338)   (0.343)   (0.227)   (0.755)   (0.704)   (0.668)   (0.904)
                                                  1.0656              0 .8220         0.1279              -.0487          0.0761             0.0561
                              OFFEXC      -                   -                 -                -                  -                -
                                                 (0.053) **           (0.174)         (0.541)            (0.797)          (0.561)            (0.659)
                                                  -1.5062            -2.2312          -3.0979            -5.1683          1.8739             -.2836
                              MS          -                   -                 -                -                  -                -
                                                  (0.542)             (0.520)         (0.558)            (0.294)          (0.648)            (0.943)
                                                  -0.1718            -2.8231          -0.2166            -1.0962         -1.3616             -1.7843
                              LIR         -                   -                 -                -                  -                -
                                                  (0.926)             (0.207)         (0.857)            (0.364)          (0.423)            (0.411)
                                                            8.2999   -2.1729                   -14.169   -28.809                  25.2815    19.942
                              EXP         -         -                           -       -                           -       -
                                                            (0.570)   (0.892)                  ( 0.608)   (0.357)                 (0.089) *   (0.261)
                                                            -8.574   -8.6172                   -11.583   -13.340                   -2.6416   -2.4338
                              Trade       -         -                           -       -                           -       -
                                                           (0.013) **   (0.036) **            (0.003) ***   (0.001) ***           (0.226) *   (0.323) *
                                                            0.2161    0.2559                   1.1632    1.0898                    1.3634    1.3521
                              FDI         -         -                           -       -                           -       -
                                                            (0.177)   (0.122)*                 (0.010)**   (0.020)               (0.000) ***   (0.000) ***
                                                            0.8128    0.7458                   2.6179    3.5237                    -2.5297   -3.3671
                              Aid         -         -                           -       -                           -       -
                                                            (0.613)   (0.753)                  (0.370)   (0.247)                   (0.210)   (0.136 )
                              Obs         78       78        78        78       67      67       67        67      78      78       78        78
                              R-^2      0.0411    0.0943    0.1595    0.2056     0.0077   0.0308   0.2865   0.3095   0.0013   0.0273   0.2212   0.2332







                       Source: Authors computation using STATA ,2023
                       Note: The dependent variable is the RGDP: Real GDP per capita. Figures in brackets imply t statistics. (***), (**), (*) reveal the 1%, 5%, and 10% level of significance, respectively.
                       RGDP; Real gross domestic annual growth, FD: financial development, Ms: annual money supply growth, LIR: Lending interest rate, GNEXP: Gross national expenditure, C. Govt debt:
                       central government debt, D. saving: Domestic saving, Trade: Trade openness, FDI: foreign direct investment, and Aid
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