Variable

Coefficient

(Standard Error)

p Value

Relative real exchange rate

0.116486

(0.2537517)

0.646

Relative real exchange rate volatility

0.1094829***

(0.0477805)

0.022

GDP of home country

7.56e−11***

(1.33e−12)

0.000

GDP of host country

5.56e−10***

(2.64e−11)

0.000

Geographic distance

−0.0418228***

(0.0043226)

0.000

Bilateral trade

0.0304479***

(0.000501)

0.000

Relative cost of borrowing

0.7441286***

(0.0221266)

0.000

Relative labor productivity

11.18942***

(1.365747)

0.000

Relative corruption

4.638208***

(0.1647012)

0.000

Cultural distance

27.40587

(25.28461)

0.278

Number of observations

630

Wald chi²

102,272.33

Number of countries

42

AR (2)

0.1488