25
APPENDIX A
Prais-Winsten Regressions of Government Spending as a Percentage of GDP Regressed on
Control Variables, Capital Liberalization, Exchange Rate Regimes and their Interaction.
(1) (2) (3) (4) (5)
pwtkg pwtkg pwtkg pwtkg pwtkg
Agedep
29.056*** 29.052*** 29.526*** 27.691*** 30.183***
(6.854) (7.005) (6.444) (7.001) (6.574)
Growth -0.048**
-0.046**
-0.041* -0.049** -0.057**
(0.023) (0.023) (0.023) (0.023) (0.023)
Unemployment -0.159**
-0.160** -0.141** -0.155** -0.154*
(0.077) (0.075) (0.070) (0.077) (0.080)
Trade -0.043**
-0.040*
-0.046** -0.043**
(0.022) (0.022) (0.020) (0.021)
Cap.
Mobility
0.002 0.014 0.038 0.005 -0.044
(0.455) (0.461) (0.428) (0.454) (0.462)
Fixrate -2.196*
-2.181*
-1.732* -2.260** -2.301**
(1.121) (1.134) (0.954) (1.123) (1.128)
Capfix 0.792* 0.783* 0.668* 0.798** 0.827**
(0.407) (0.412) (0.361) (0.407) (0.406)
Logprices
0.031
(0.156)
Debtserv
-0.026
(0.016)
Democracy
0.567
(0.392)
Tradepppcur
1.061
(2.820)
Constant -0.910 -1.238 -0.412 -0.526 -2.750
(4.183) (4.248) (3.919) (4.198) (4.022)
Observations
341 338 341 341 341
Standard errors in parentheses; * significant at 10%; ** significant at 5%; *** significant at 1%
Convention