Model

SAR

SDM

SAC

Pooled

Within

Pooled

Within

Pooled

Original Model

Economic growth rate (t − 1)

0.187*

0.214**

0.037

0.046

0.0390

Log Trade Openness (t)

−0.056

−0.0630

−0.126**

−0.168***

−0.128**

Log Trade Openness square (t)

0.004

0.0060

0.016

0.023*

0.017

Log Trade Openness (t − 1)

0.031

0.0230

0.029

0.023

0.029

Human Capital Index (t)

0.611***

0.616***

2.444***

2.39***

2.446***

Human Capital index (t − 1)

−0.605***

−0.624***

−2.384***

−2.371***

−2.386***

Log Government spending to GDP (t)

−0.057

−0.0090

−0.013

−0.075*

−0.016

Log Households Spending to GDP (t)

−0.019

−0.0110

0.093***

0.065***

0.094***

Intercept

0

0.1190

Model with Spatial Effects

Economic growth rate (t − 1)

0.164**

0.000

Log Trade Openness (t)

0.131*

0.152**

Log Trade Openness squared (t)

−0.014

0.167***

Log Trade Openness (t − 1)

−0.031

−0.021

Human Capital Index (t)

−2.49***

−0.025

Human Capital index (t − 1)

2.427***

−2.442***

Log Government spending to GDP (t)

0.03

2.417***

Log Households Spending to GDP (t)

−0.078**

0.079*

Validation Indicators

Spatial Correlation

Rho (ρ)

−0.629***

−0.596***

0.401***

0.395***

−59505

Lambda (λ)

0.991***

Spatial Variance

lgt_theta (log θ)

0

0.9470

14274

0.000

Sigma (σ) squared_e

0.009***

0.009***

0.001***

0.001***

0.001***

R-squared

27.15%

23.56%

22%

64.36%

8.99%

Hausman Test

−1.320

1.420

1