1.

Run POL
Dependent Variable: GDP
Method: Panel Least Squares
Date: 05/14/23 Time: 01:24
Sample: 1998 2020
Periods included: 23
Cross-sections included: 5
Total panel (balanced) observations: 115

Variable Coefficient Std. Error t-Statistic Prob.

C 0.019064 0.005171 3.686564 0.0004

REER -0.099637 0.025627 -3.887970 0.0002
RIR 0.002928 0.001744 1.678539 0.0961
INFL -0.048402 0.007076 -6.840318 0.0000
TO 0.334510 0.045155 7.408092 0.0000
GS 0.259714 0.037466 6.931999 0.0000

R-squared 0.524602 Mean dependent var 0.034257

Adjusted R-squared 0.502794 S.D. dependent var 0.013468
S.E. of regression 0.009497 Akaike info criterion -6.424983
Sum squared resid 0.009830 Schwarz criterion -6.281769
Log likelihood 375.4365 Hannan-Quinn criter. -6.366853
F-statistic 24.05628 Durbin-Watson stat 0.265411
Prob(F-statistic) 0.000000

2. BP test
Lagrange Multiplier Tests for Random Effects
Null hypotheses: No effects
Alternative hypotheses: Two-sided (Breusch-Pagan) and one-sided
(all others) alternatives

Test Hypothesis
Cross-section Time Both

Breusch-Pagan 47.18500 5.155167 52.34016

(0.0000) (0.0232) (0.0000)

Honda 6.869134 -2.270499 3.251726

(0.0000) (0.9884) (0.0006)

King-Wu 6.869134 -2.270499 5.428121

(0.0000) (0.9884) (0.0000)

Standardized Honda 15.58396 -2.157477 0.301573

(0.0000) (0.9845) (0.3815)

Standardized King-Wu 15.58396 -2.157477 5.802024

(0.0000) (0.9845) (0.0000)

Gourieroux, et al. -- -- 47.18500

(0.0000)
3. Random Effect Model

Dependent Variable: GDP

Method: Panel EGLS (Cross-section random effects)
Date: 05/13/23 Time: 23:33
Sample: 1998 2020
Periods included: 23
Cross-sections included: 5
Total panel (balanced) observations: 115
Swamy and Arora estimator of component variances

Variable Coefficient Std. Error t-Statistic Prob.

C 5.46E-05 0.003635 0.015015 0.9880

REER -0.016285 0.018790 -0.866695 0.3880
RIR 0.002331 0.001452 1.605216 0.1113
TO 0.272359 0.036864 7.388227 0.0000
GS 0.165940 0.029060 5.710222 0.0000

Effects Specification
S.D. Rho

Cross-section random 0.000000 0.0000

Idiosyncratic random 0.007915 1.0000

Weighted Statistics

R-squared 0.320530 Mean dependent var 0.034257

Adjusted R-squared 0.295822 S.D. dependent var 0.013468
S.E. of regression 0.011302 Sum squared resid 0.014050
F-statistic 12.97270 Durbin-Watson stat 0.129825
Prob(F-statistic) 0.000000

Unweighted Statistics

R-squared 0.320530 Mean dependent var 0.034257

Sum squared resid 0.014050 Durbin-Watson stat 0.129825

4. Hausman Test
Correlated Random Effects - Hausman Test
Equation: Untitled
Test cross-section random effects

Test Summary Chi-Sq. Statistic Chi-Sq. d.f. Prob.

Cross-section random 118.280143 4 0.0000

** WARNING: estimated cross-section random effects variance is zero.

Cross-section random effects test comparisons:

Variable Fixed Random Var(Diff.) Prob.

REER -0.052378 -0.016285 0.000728 0.1810

RIR 0.019737 0.002331 0.000016 0.0000
TO 0.145484 0.272359 0.000617 0.0000
GS 0.373400 0.165940 0.000543 0.0000

Cross-section random effects test equation:

Dependent Variable: GDP
Method: Panel Least Squares
Date: 05/13/23 Time: 23:35
Sample: 1998 2020
Periods included: 23
Cross-sections included: 5
Total panel (balanced) observations: 115

Variable Coefficient Std. Error t-Statistic Prob.

C -0.006946 0.005759 -1.206236 0.2304

REER -0.052378 0.032879 -1.593076 0.1141
RIR 0.019737 0.004229 4.667145 0.0000
TO 0.145484 0.044447 3.273239 0.0014
GS 0.373400 0.037248 10.02458 0.0000

Effects Specification

Cross-section fixed (dummy variables)

R-squared 0.678867 Mean dependent var 0.034257

Adjusted R-squared 0.654630 S.D. dependent var 0.013468
S.E. of regression 0.007915 Akaike info criterion -6.765105
Sum squared resid 0.006640 Schwarz criterion -6.550284
Log likelihood 397.9935 Hannan-Quinn criter. -6.677911
F-statistic 28.01010 Durbin-Watson stat 0.204554
Prob(F-statistic) 0.000000

5. Fixed Effect
Dependent Variable: GDP
Method: Panel Least Squares
Date: 05/13/23 Time: 23:05
Sample: 1998 2020
Periods included: 23
Cross-sections included: 5
Total panel (balanced) observations: 115

Variable Coefficient Std. Error t-Statistic Prob.

C -0.000920 0.004858 -0.189361 0.8502

REER -0.046925 0.027306 -1.718490 0.0887
RIR 0.022077 0.003527 6.259981 0.0000
INFL -0.040649 0.005819 -6.986031 0.0000
TO 0.251680 0.039907 6.306673 0.0000
GS 0.443643 0.032516 13.64372 0.0000

Effects Specification

Cross-section fixed (dummy variables)

R-squared 0.780767 Mean dependent var 0.034257

Adjusted R-squared 0.761976 S.D. dependent var 0.013468
S.E. of regression 0.006571 Akaike info criterion -7.129437
Sum squared resid 0.004533 Schwarz criterion -6.890747
Log likelihood 419.9426 Hannan-Quinn criter. -7.032554
F-statistic 41.54922 Durbin-Watson stat 0.434268
Prob(F-statistic) 0.000000

C_ID Effect
1 1 -0.007179
2 2 -0.028876
3 3 0.019009
4 4 0.005717
5 5 0.011329

Estimation Command:
=========================
LS(CX=F) GDP C REER RIR INFL TO GS

Estimation Equation:
=========================
GDP = C(1) + C(2)*REER + C(3)*RIR + C(4)*INFL + C(5)*TO + C(6)*GS + [CX=F]

Substituted Coefficients:
=========================
GDP = -0.000919900245788 - 0.0469253362274*REER + 0.0220771459472*RIR - 0.0406489803364*INFL +
0.251679562124*TO + 0.4436430841*GS + [CX=F]