Table 3 Results from fixed and random analysis.

From: Institutional quality, foreign direct investment, and economic development in sub-Saharan Africa

Variable

Full sample

East Africa

Central Africa

Southern Africa

West Africa

Fixed effect

Random effect

Fixed effect

Random effect

Fixed effect

Random effect

Fixed effect

Random effect

Fixed effect

Random effect

Human development index

0.34*

(0.08)

[0.00]

0.35*

(0.01)

[0.00]

0.32*

(0.02)

[0.00]

0.39*

(0.02)

[0.00]

0.32*

(0.03)

[0.00]

0.33*

(0.03)

[0.00]

0.38*

(0.02)

[0.00]

0.38*

(0.02)

[0.00]

0.30*

(0.01)

[0.00]

0.31*

(0.01)

[0.00]

Foreign direct investment

0.04*

(0.01)

[0.00]

0.04*

(0.01)

[0.00]

0.04*

(0.01)

[0.00]

0.05*

(0.01)

[0.00]

−0.01*

(0.03)

[0.00]

−0.01**

(0.05)

[0.04]

0.01

(0.01)

[0.52]

−0.06

(0.01)

[0.64]

0.03

(0.04)

[0.42]

0.02

(0.04)

[0.54]

Domestic investment

0.01

(0.01)

[0.36]

0.01

(0.01)

[0.25]

0.05

(0.02)

[0.83]

0.01

(0.02)

[0.58]

−0.01

(0.01)

[0.40]

0.03

(0.02)

[0.85]

0.03*

(0.07)

[0.00]

0.03*

(0.01)

[0.00]

0.07*

(0.02)

[0.00]

0.07*

(0.02)

[0.00]

Infrastructure

0.03*

(0.02)

[0.00]

0.03*

(0.01)

[0.00]

0.01*

(0.06)

[0.00]

0.02*

(0.03)

[0.00]

0.03*

(0.07)

[0.00]

0.03*

(0.03)

[0.00]

0.02*

(0.02)

[0.00]

0.02*

(0.02)

[0.00]

0.03*

(0.02)

[0.00]

0.03*

(0.02)

[0.00]

Political stability and absence of violence

0.01*

(0.03)

[0.00]

0.01*

(0.03)

[0.00]

0.01

(0.01)

[0.12]

0.06

(0.09)

[0.94]

0.04*

(0.07)

[0.00]

0.04*

(0.01)

[0.00]

−0.04

(0.01)

[0.71]

0.03*

(0.01)

[0.00]

−0.05

(0.04)

[0.14]

−0.04

(0.03)

[0.24]

Government effectiveness

0.07

(0.07)

[0.92]

0.06

(0.07)

[0.38]

0.03***

(0.02)

[0.06]

0.05**

(0.01)

[0.00]

0.01

(0.02)

[0.94]

−0.02

(0.02)

[0.47]

0.02

(0.02)

[0.44]

0.06*

(0.01)

[0.00]

−0.03

(0.09)

[0.73]

−0.08

(0.08)

[0.33]

Accountability

−0.03

(0.07)

[0.65]

0.01

(0.06)

[0.98]

−0.02

(0.01)

[0.10]

−0.01

(0.01)

[0.92)

−0.08

(0.02)

[0.73]

−0.01

(0.02)

[0.80]

−0.08**

(0.03)

[0.01]

−0.02**

(0.01)

[0.02]

0.02**

(0.09)

[0.01]

0.02**

(0.01)

[0.01]

Apriori expectation

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

Countries uummies

No

No

No

No

No

No

No

No

No

No

P—a value

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

Observation

489

489

142

142

96

96

61

61

190

190

Adj. R sq.

0.6629

0.6819

0.6839

0.7585

0.8962

0.9032

0.7312

0.8872

0.6535

0.6569

Hausman test

0.00

0.00

0.00

0.00

0.00

  1. Note: *, ** and *** means that the significance of the variables at 1%, 5%, and 10%, respectively. Yes, associated with the ‘Apriori’ expectation means that variables conform to the ‘Apriori’ expectations and No otherwise.
  2. Source: Author’s Computation, 2019.
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