Dependent variable

Annual growth rate in GDP per capita

Sample

10 countries (14 years)

Model

Pooled OLS

2SLS

FD

FE

RE

Regression

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

LGGDP

−4.897

−6.467***

-

-

−0.025

−0.061

-

-

−4.833*

−6.467***

(2.996)

(2.121)

-

-

(0.286)

(0.288)

-

-

(2.746)

(2.121)

INV

0.017

0.006

0.003

0.019

0.076

0.052

0.057

0.078

0.006

0.006

(0.064)

(0.057)

(0.061)

(0.067)

(0.226)

(0.215)

(0.071)

(0.062)

(0.061)

(0.057)

LABOUR

−0.519

−0.288

−0.478

−0.314

−1.324

−2.307

−0.411

−0.316

−0.461

−0.288

(0.717)

(0.745)

(0.604)

(0.661)

(1.361)

(1.518)

(0.745)

(0.857)

(0.671)

(0.745)

AID

−0.006

−0.133

0.318

0.511

−0.218

−0.015

0.257

0.234

−0.015

−0.133

(0.249)

(0.214)

(0.212)

(0.395)

(0.467)

(0.532)

(0.370)

(0.308)

(0.237)

(0.214)

AID²

0.001

0.004

−0.003

−0.003

0.005

0.004

−0.001

0.000

0.001

0.004*

(0.002)

(0.002)

(0.003)

(0.004)

(0.005)

(0.006)

(0.003)

(0.003)

(0.002)

(0.002)

POLICY

0.322

0.252

-

-

0.743

1.745

0.354

0.375

0.317

0.252

(0.539)

(0.717)

-

-

(1.376)

(1.449)

(0.763)

(0.749)

(0.535)

(0.717)

AID × POLICY

0.018

0.010

0.020

−0.008

0.008

−0.072

−0.010

−0.013

0.018

0.010

(0.046)

(0.058)

(0.021)

(0.039)

(0.100)

(0.104)

(0.062)

(0.058)

(0.045)

(0.058)

AID_t−1

-

−0.076

-

−0.092

-

0.006

-

−0.022

-

0.076*

-

(0.116)

-

(0.168)

-

(0.213)

-

(0.132)

-

(0.116)

POLICY_t−1

-

−0.067

-

0.070

-

1.886

-

0.123

-

−0.067

-

(0.611)

-

(0.623)

-

(1.310)

-

(0.707)

-

(0.611)

AID_t−1 × POLICY_t−1

-

0.042

-

0.042

-

−0.040

-

0.019

-

0.042

-

(0.041)

-

(0.052)

-

(0.081)

-

(0.043)

-

(0.041)

AID_t−2

-

0.097

-

0.053

-

0.023

-

0.076

-

0.097

-

(0.066)

-

(0.108)

-

(0.124)

-

(0.070)

-

(0.066)

POLICY_t−2

-

−0.079

-

−0.308

-

−0.227

-

−0.119

-

−0.079

-

(0.463)

-

(0.657)

-

(0.890)

-

(0.514)

-

(0.463)

AID_t−2 × POLICY_t−2

-

−0.028

-

−0.025

-

−0.030

-

−0.024

-

−0.028

-

(0.023)

-

(0.036)

-

(0.045)

-

(0.023)

-

(0.023)

AID_t−3

-

0.056

-

0.072

-

0.110

-

0.074

-

0.056

-

(0.043)

-

(0.075)

-

(0.240)

-

(0.048)

-

(0.043)

POLICY_t−3

-

0.385

-

0.782

-

−1.131

-

0.412

-

0.385

-

(0.425)

-

(0.503)

-

(1.287)

-

(0.416)

-

(0.425)

AID_t−3 × POLICY_t−3

-

−0.009

-

−0.018

-

−0.033

-

−0.018

-

−0.009

-

(0.017)

-

(0.025)

-

(0.079)

-

(0.019)

-

(0.017)

INSTITUTIONAL QUALITY

1.724*

1.816**

1.879***

2.399***

2.941

2.575

1.933*

2.024

1.593*

1.816**

(0.968)

(0.883)

(0.687)

(0.530)

(1.930)

(2.099)

(1.008)

(1.046)

(0.830)

(0.883)