Model B

Credit to private

Model A

Credit provided by banking

Model

Financial variable

9.57 [0.00]

6.07 [0.08]

Intercept β0

−0.005 [0.76]

0.02 [0.17]

Parameterβ1

−0.12 [0.01]

−0.08 [0.02]

Parameter

20.36

20.33

Threshold Parameter (c)

6

6

Smooth Parameter (g )

Control Variables

0.001 [0.96]

0.03 [0.4]

Openness to trade

0.9 [0.00]

0.57 [0.05]

Population growth

−0.04 [0.08]

−0.02 [0.52]

Inflation rate

−0.45 [0.00]

−0.37 [0.00]

Government size

Diagnostic Test Statistics

0.27

0.13

R-Squared:

1.55

1.43

DW

15,134.91

15,439.08

SSR

0.000

0.000

Prob (F-statistic)