Variables | Good institutional environment | Poor institutional environment | ||
Two-step D-GMM | One-step D-GMM | Two-step D-GMM | One-step D-GMM | |
Real GDP per capita (−1) | −0.800*** (0.076) | −0.798*** (0.089) | −0.716*** (0.103) | −0.658*** (0.151) |
Public investment | 1.020** (0.412) | 1.524** (0.715) | −2.265*** (0.835) | −2.589*** (0.864) |
Private investment | 0.466 (0.194) | 0.767 (0.228) | 0.601 (0.159) | 0.552 (0.216) |
Recurrent expenditure | −6.655*** (1.102) | −8.968*** (2.155) | −0.754 (0.843) | −0.048 (1.023) |
Labor force | 7.577*** (0.964) | 8.161*** (1.547) | 1.873*** (0.378) | 1.795*** (0.473) |
Consumer price index | −0.538*** (0.114) | −0.896*** (0.282) | −0.439*** (0.106) | −0.324** (0.154) |
Infrastructure | −0.011 (0.011) | −0.003 (0.023) | 0.052 (0.028) | 0.017 (0.034) |
Trade openness | 0.011 (0.013) | −0.0008 (0.016) | 0.141 (0.075) | 0.163 (0.084) |
Instrument | 23 | 20 | 14 | 14 |
Province/Observation | 48/253 | 48/253 | 41/163 | 41/163 |
Sargan test | 0.104 | 0.344 | 0.130 | 0.130 |
Hansen test | 0.178 | NA | 0.248 | NA |
AR (2) test | 0.982 | 0.779 | 0.820 | 0.755 |