Sachs studied the Philippines over the period 1965-1990, during which our pcgdp
growth rate was actually 5.3 percentage points a year behind those of the Asian Tigers (South Korea, Taiwan, Hong Kong and Singapore), and 3.3 percentage points behind the Tiger Wannabes (Indonesia, Thailand, Malaysia) and China.
In addition, the results of Pcgdp
and Post*TFF confirm that the level of regional economic development and the TFF reform have the significant impacts on county finances with oppositely influential direction of their impacts.
Estimated mean variance inflation factor (VIF) is 19.30, which results from the inclusion of both Log (PCGDP
) and its square term in the model.
As is standard in the literature, our economic development measure is the (logarithm of) real GDP per capita (pcgdp
(2000a) World Bank database money bank to GDP ratio (PCGDP
) Table 2.
The developing countries and data regarding PCGDP
, FDI and trade variables have been selected from World Development Indicators (2009).
The results of variable pcgdp
provide evidence in favour of the convergence hypothesis in the all countries category (Table 2), leaders and potential leader's categories and dynamic adopter categories (Tables 3 to 5).
For the variables representing the firms' countries of origin (level 3), two are quantitative (NCI and PCGDP
) and correspond to the national competitiveness index and per capital gross domestic product of each company's country of origin, respectively.
Columns (3) through (8) of the table provide the estimation results for alternate specifications, estimated using standard logit techniques but including VOTE, GDP, PCGDP
, POP, ASSETS, or UNDIFF, respectively, as the district indicator.
= [c.sub.0] + [c.sub.1]PROD + HUMCAP + [c.sub.2]CORRUPTION (9c)
(1) GROWTH = [a.sub.0] + [a.sub.1] INVGDP + [a.sub.2] HUMCAP + [a.sub.3] PREMIUM + [a.sub.4] GOV + [a.sub.5] INFLATION + [a.sub.6] OPENNESS + [a.sub.7] INSTABILITY + [a.sub.8] DEMOCRACY + [a.sub.9] TERMS + [a.sub.10] PCGDP
= [a.sub.0] + [a.sub.1]KAPW + [a.sub.2]HUMCAP + [a.sub.3]INFLATION + [a.sub.4]DEMOCRACY + [a.sub.5]GOVT + [a.sub.6]TERMS + [a.sub.7]LIQUID + [a.sub.8]INSTABILITY + [a.sub.9]OPEN + [a.sub.10]PREMIUM + [a.sub.11]INEQUALITY.