Regressions

Annual Data

Data over Five Years

One Step

System GMM

Two Step

System GMM

One Step

System GMM

Two Step

System GMM

(1)

(2)

(3)

(4)

Relative Initial Income to the Leader

−0.051^**

−0.048^*

−0.017^**

−0.019^*

(−2.00)

(−1.81)

(−1.96)

(−1.69)

Consumer Credit

−0.094^**

−0.085^***

−0.026^**

−0.039^***

(−2.29)

(−3.56)

(−2.24)

(−2.76)

Investment Credit

0.102^**

0.115^**

0.076^**

0.098^**

(2.4)

(1.99)

(2.34)

(2.15)

Government Consumption

0.096^***

0.115^***

0.031^**

0.058^**

(2.92)

(3.17)

(2.4)

(2.28)

Inflation Rate

−0.031

−0.019^*

−0.001^*

−0.003^**

(−1.65)

(−1.85)

(−1.76)

(−1.99)

Trade Openness

0.078^***

0.064^**

0.022^**

0.027

(2.66)

(2.02)

(2.55)

(1.58)

Constant

−0.528^***

−0.372^**

−0.756^***

−0.694^***

(−2.7)

(−2.19)

(−2.82)

(−2.96)

Wald Test

0.000

0.000

0.000

0.000

M2 Test

0.425

0.536

0.730

0.662

Sargan Test

0.439

0.477

0.610

0.626

Hansen Test

0.278

0.335

Kleibergen-Paap Test

0.002

0.002

0.006

0.006

Observations

442

442

78

78