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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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