Variables

Results for the entire sample

Results without frontier markets

REM

FEM

REM

FEM

1

2

3

4

Constant

7.987***

(1.128)

8.052***

(1.077)

8.116***

(1.210)

8.292***

(1.173)

Budget deficit

−0.194***

(0.045)

−0.193***

(0.046)

−0.198***

(0.049)

−0.194***

(0.050)

Exchange rate

−0.089***

(0.029)

−0.082***

(0.031)

−0.089***

(0.029)

−0.084***

(0.031)

Money supply

0.042

(0.096)

0.040

(0.099)

0.042

(0.101)

0.034

(0.104)

Inflation

−0.044

(0.417)

−0.050

(0.420)

−0.133

(0.452)

−0.152

(0.454)

Interest rate

−0.213

(0.140)

−0.213

(0.144)

−0.277

(0.148)

−0.298*

(0.153)

GDP growth rate

0.156*

(0.086)

0.150*

(0.086)

0.172*

(0.090)

0.161*

(0.091)

R-squared

0.108

0.114

0.091

0.095

F-statistic (p-value)

0.000***

0.000***

0.000***

0.000***

Number of obs

322

322

287

287

Number of groups

20

20

18

18