Table 6 Contribution of foreign aid to domestic investment (ARDL).
From: Revisited the role of foreign aid in capital formation: experience of South Asian countries
Variables | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
Long-run coefficients | |||||||
Constant | 2.31* (0.76) | 3.09** (0.86) | 2.87** (0.72) | 2.88* (1.01) | 3.41** (0.91) | 3.37** (0.73) | 4.05** (0.79) |
G | 0.43** (0.09) | 0.56** (0.11) | 0.63** (0.14) | 0.52** (0.21) | 0.41** (0.12) | 0.71** (0.23) | 0.65** (0.21) |
AID | −0.78** (0.32) | −1.88** (0.56) | −3.59* (0.31) | −1.52** (0.34) | −2.56** (0.49) | −2.87** (0.56) | −2.02* (0.55) |
LR | 0.19* (0.08) | 0.16* (0.07) | 0.15* (0.07) | 0.18* (0.07) | 0.16* (0.07) | 0.15* (0.07) | 0.19** (0.06) |
TD | 0.16** (0.04) | 0.18** (0.04) | 0.16* (0.06) | 0.20* (0.07) | 0.11* (0.05) | 0.15* (0.06) | 0.12* (0.06) |
REXC | −0.05* (0.02) | −0.06* (0.03) | −0.07* (−0.03) | −0.05* (0.02) | −0.05* (0.02) | −0.04* (0.015) | −0.05* (−0.02) |
DC | 0.21** (0.04) | 0.19** (0.05) | 0.14* (0.05) | 0.22** (0.05) | 0.21** (0.05) | 0.18** (0.05) | 0.20** (0.06) |
AID*DC | – | 0.071** (0.02) | – | – | – | – | – |
AID*EXD | – | – | 0.09* (0.03) | – | – | – | – |
AID*FDI | – | – | – | 0.98* (0.26) | – | – | – |
AID*TD | – | – | – | – | 0.06** (0.02) | – | – |
AID*GEXP | – | – | – | – | – | 0.12** (0.04) | – |
AID*HUM | – | – | – | – | – | – | 0.043** (0.01) |
Short-run coefficients | |||||||
DGt − 1 | −0.02 (−0.03) | −0.03** (−0.01) | −0.02 (−0.03) | −0.04* (0.02) | −0.02 (0.03) | −0.04* (−0.02) | −0.03 (0.02) |
DAID | 0.16* (0.07) | 0.17* (0.07) | 0.13* (0.05) | 0.12 (0.07) | 0.17* (0.08) | 0.11 (0.09) | 0.15* (0.06) |
DLR | −0.03* (0.01) | −0.02 (0.04) | −0.04* (0.01) | −0.05* (0.02) | −0.03 (0.03) | −0.04* (0.02) | −0.05* (0.01) |
DTD | 0.05 (0.07) | −0.04 (0.05) | −0.03 (0.04) | 0.05 (0.07) | −0.05 (0.03) | −0.06 (0.05) | 0.04 (0.03) |
DREXC | 0.02 (0.03) | −0.01 (0.01) | 0.03 (0.02) | 0.01 (0.02) | 0.02 (0.04) | 0.01 (0.03) | 0.01 (0.02) |
DDC | 0.05* (0.02) | 0.06* (0.03) | 0.07* (0.03) | 0.05* (0.02 | 0.06** (0.02) | 0.03** (0.01) | 0.04* (0.02) |
Net effect | – | 0.27 | −0.26 | 0.19 | 1.1 | −0.35 | 0.43 |
ECT | −0.11** | −0.17* | −0.13** | −0.12** | −0.16** | −0.13** | −0.15** |
Hausman test | 0.32 | 0.43 | 0.37 | 0.27 | 0.21 | 0.29 | 0.25 |
ADJ. R2 | 0.66 | 0.67 | 0.68 | 0.63 | 0.71 | 0.65 | 0.72 |
