Model variables

Model 1

Model 2

Coef

Prob

Coef

Prob

· Rule of law

8.429

0.231

5.946

0.573

· Political stability

−3.116

0.355

−5.315

0.252

· Quality of regulation

11.838

0.367

23.309

0.049*

· Cell phone subscriptions (% of population)

−9.317

0.147

−8.587

0.372

· Internet users (% of population)

--

−0.118

0.770

· GDP per capita (current US$)

0.004

0.128

0.003

0.100**

· Urban population (% of total)

0.023

0.906

0.168

0.298

· Employment rate of the population aged 15 and over

0.105

0.662

0.201

0.517

Constant

45.476

0.001*

44.428

0.034*

F-stat

17.59

0.000*

11.54

0.00

R² censored

0.603

R² uncensored

0.938

R²

0.636

Root MSE

11.74

13.355

Hansen over-idenification test

6.336

0.042

Test of endogeneity of the variable Pib/habitants, implemented using the “endog” option.

0.047

0.828