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Girma, Abebe Gule: The Role of Financial Development in Post-War Economic Growth

                    Table 5: Financial development and economic growth, multiplicative dummy
                    variable regression analysis
                  Period       Whole sample       Pre-war period       War period         Post war period
                  Variables   Column1   Column 2   Column 3   Column 4   Column5   Column6   Column7   Column8
                  _constant   3.6419*   -14.4779   2.8025   -11.3623*   1.7344   -11.6271    4.5324**   -17.9308
                            (0.099)    (0.506)   (0.234)   (0.604)   (0.427)   (0.585)   (0.039)   (0.408)
                  FD:       2.1200**   1.7532**   1.8918**   1.5418 *   2.0994**   2.0108**   1.3474   1.2147
                            (0.025)   (0.051)   (0.052)   (0.092)   (0.022)   (0.023)   (0.163)   (0.187)
                  Off exc    0.1960**   0.1022   0 .2232***   0.1186    0.1648**   0 .0612   0 .0990   0.0844
                            (0.017)   (0.209)   (0.010)   (0.151)   (0.039)   (0.447)   (0.258)   (0.595)
                  Ms.       -2.9045*   -2.9554*   -2.4708   -2.3508    -1.5628   -1.9496    -3.1032*   -3.3095
                            (0.110)   (0.087)   (0.185)   (0.191)   (0.382)   (0.255)   (0.083)   (0.055) *
                  LIR       -.9910   -1.6032**   -.7636   -1.3280*   -0.4604   -1.1169    -1.2220*   -1.7444**
                            (0.165)   (0.040)   (0.307)   (0.103)   (0.512)   (0.151)   (0.084)   (0.025)
                  GNEXP     -       14.2874   -         12.0355   -         12.1024    -        16.6962*
                                    (0.165)             (0.250)             (0.230)             (0.104)
                  Trade     -       -4.3707***   -      -4.8248***   -      -5.4335***   -      -4.3195***
                                    (0.006)             (0.003)             (0.001)             (0.007)
                  FDI       -       0.8485***   -       0.8745***   -       0.7313***   -       0.7213***
                                    (0.000)             (0.000)             (0.000)             (0.000)
                  Aid       -       -2.3178**   -       -1.6890    -        -1.2567    -        -2.6756
                                    (0.035)             (0.165)             (0.261)             (0.015)
                  FD*Pre-   -       -         0.5058    0.6224    -         -         -         -
                  war dummy                   (0.315)   (0.236)
                  FD*war                      -         -         -1.8807   -1.5573***   -      -
                  dummy                                           (0.000) ***   (0.001)
                  FD*Post-  -       -         -         -         -         -         1.3802***   1.0876**
                  war dummy                                                           (0.004)   (0.027)
                  Observation   224   224     224       224       224       224       224       224
                  R-squared    0.0534   0.2197   0.0577   0.2248   0.1168   0.2577    0.0880    0.2373
                    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, Trade: Trade openness, FDI: foreign direct investment, and Aid.





















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