GOLDEN GROWTH
Table A3.2: EU membership as an anchor for institutional development (testing the role of EU proximity and investment-driven versus savings-substitutions effects) Dependent variable is growth in GDP per capita (PPP terms)
Financial development
Current account balance (CAB)
0.032 0.034
0.039
0.040
0.038
0.057
0.041
EU 12 and EU candidates x CAB
-0.164***
-0.169***
-0.169***
-0.674**
-0.735***
-0.505*
0.051
0.057
0.060
0.255
0.260
0.264
0.488***
0.477***
0.476***
0.498***
0.429***
0.499***
0.082
0.101
0.107
0.086
0.095
0.074
EU eastern partnership x CAB
CAB x dummy for financial development
0.028
Financial frictions (institutional development) 0.029
0.019
0.031
0.016
0.006
in top two quartiles
0.049
CAB x dummy for financial development
-0.025
in top quartile
0.077
CAB x dummy for institutional
0.027
development in top two quartiles
0.075
CAB x dummy for institutional
-0.037
development in top quartile
0.055
Observations
329
329
329
208
208
208
Number of countries
88
88
88
59
59
59
0.305
0.567
0.269
0.511
0.598
0.720
37
46
46
37
46
46
p value of Hansen statistic Number of instruments
Note: Other growth determinants included (but not reported) are population growth, educational attainment, trade openness, and the relative price of investment goods. Robust standard errors are reported below each point estimate. ***, **, and * denote signiďŹ cance at the 1, 5, and 10 percent levels, respectively. Source: Stojkov and Zalduendo 2011, table 6.
178