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Can Bribes Buy Protection Against International Competition?
Unformatted Document Text:  Table 2. Determinants of non-tariff barriers to trade Dependent variable Hidden barriers Regulatory barriers 1 2 3 4 5 6 Political ideology -.249** -.237** -.197 -.156* -.133 -.086 (.113) (.116) (.125) (.094) (.093) (.104) Post-communist -.112 -.176 -.011 -.298 -.458 -.315 (.361) (.435) (.257) (.294) (.341) (.304) Log GDP per capita .228 .269 .353 .411** .353 .508** (.228) (.276) (.245) (.186) (.218) (2.07) Political competition .704 .686 .682 .333 .299 .211 (.429) (.439) (.444) (.354) (.356) (.373) Press freedom .001 .001 .004 -.003 -.005 -.002 (.009) (.010) (.011) (.007) (.008) (.009) Corruption .313*** .288** .266*** .271*** .238** .226*** (.079) (.135) (.081) (.065) (.106) (.069) Observations 151 149 131 152 149 131 Countries 70 68 63 70 68 63 R squared between .731 .724 .743 .803 .789 .784 R squared within .110 .113 .135 .319 .326 .346 Wald Chi squared 174.55 154.82 157.96 283.69 241.68 218.55 Hausman test 3.68 - 2.30 2.00 - .63 Breusch-Pagan 13.75*** - 13.14*** 12.27*** - 9.04*** Note: standard errors in brackets; all regressions include a constant term, period dummies and dummies for Asia, Latin America, the Middle East and North Africa, and Sub-Saharan Africa; *** (**) [*] denote significance at p<.01 (p<0.5) [p<.10]. The instrumental variables employed in column 2 and 4 are the logarithm to population size, the strength of the legal system, the share of Protestants in the population and the Gastil index of political rights. The first-stage Chi squared and Hansen J-statistic is 694 and the Hansen J-statistic are 5.611 (p<.132), and 737 and 4.290 (p<.232), respectively. Columns 3 and 6 include only democracies, defined as observations with a Gastil index below three. 29

Authors: Bjørnskov, Christian.
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Table 2. Determinants of non-tariff barriers to trade
Dependent variable
Hidden barriers
Regulatory barriers
1
2
3
4
5
6
Political ideology
-.249**
-.237**
-.197
-.156*
-.133
-.086
(.113)
(.116)
(.125)
(.094)
(.093)
(.104)
Post-communist
-.112
-.176
-.011
-.298
-.458
-.315
(.361)
(.435)
(.257)
(.294)
(.341)
(.304)
Log GDP per capita
.228
.269
.353
.411**
.353
.508**
(.228)
(.276)
(.245)
(.186)
(.218)
(2.07)
Political competition
.704
.686
.682
.333
.299
.211
(.429)
(.439)
(.444)
(.354)
(.356)
(.373)
Press freedom
.001
.001
.004
-.003
-.005
-.002
(.009)
(.010)
(.011)
(.007)
(.008)
(.009)
Corruption
.313***
.288**
.266***
.271***
.238**
.226***
(.079)
(.135)
(.081)
(.065)
(.106)
(.069)

Observations
151
149
131
152
149
131
Countries
70
68
63
70
68
63
R squared between
.731
.724
.743
.803
.789
.784
R squared within
.110
.113
.135
.319
.326
.346
Wald Chi squared
174.55
154.82
157.96
283.69
241.68
218.55
Hausman test
3.68
-
2.30
2.00
-
.63
Breusch-Pagan
13.75***
-
13.14***
12.27***
-
9.04***
Note: standard errors in brackets; all regressions include a constant term, period dummies and dummies
for Asia, Latin America, the Middle East and North Africa, and Sub-Saharan Africa; *** (**) [*] denote
significance at p<.01 (p<0.5) [p<.10]. The instrumental variables employed in column 2 and 4 are the
logarithm to population size, the strength of the legal system, the share of Protestants in the population
and the Gastil index of political rights. The first-stage Chi squared and Hansen J-statistic is 694 and the
Hansen J-statistic are 5.611 (p<.132), and 737 and 4.290 (p<.232), respectively. Columns 3 and 6 include
only democracies, defined as observations with a Gastil index below three.
29


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