DepVar: Shadow Economy |
2SLS (IV) |
|
Eq. (11) |
Eq. (12) |
Eq. (13) |
Eq. (14) |
Eq. (15) |
Government Intervention |
0.069*** |
0.142*** |
0.116*** |
0.096* |
0.067* |
|
(0.022) |
(0.040) |
(0.030) |
(0.054) |
(0.035) |
Business Freedom |
-0.063*** |
-0.032 |
-0.049* |
-0.034 |
-0.037 |
|
(0.018) |
(0.032) |
(0.025) |
(0.110) |
(0.033) |
Trade Freedom |
-0.046** |
-0.027 |
-0.005 |
-0.051 |
0.008 |
|
(0.021) |
(0.029) |
(0.023) |
(0.065) |
(0.041) |
Fiscal Freedom |
-0.211*** |
- |
- |
- |
- |
|
(0.071) |
|
|
|
|
Control of Corruption |
- |
-12.41* |
- |
- |
- |
|
|
(6.819) |
|
|
|
Government Effectiveness |
- |
- |
-6.736** |
- |
- |
|
|
|
(3.131) |
|
|
Regulatory Quality |
- |
- |
- |
-13.75 |
- |
|
|
|
|
(33.91) |
|
Rule of Law |
- |
- |
- |
- |
-14.07* |
|
|
|
|
|
(8.347) |
Log(GDP per capita) |
-8.961*** |
-7.517*** |
-7.299*** |
-3.485 |
-6.560*** |
|
(0.759) |
(1.286) |
(1.186) |
(13.15) |
(1.788) |
Unemployment |
0.254*** |
0.231** |
0.245*** |
0.290* |
0.0483 |
|
(0.062) |
(0.091) |
(0.089) |
(0.156) |
(0.147) |
Economic Openness |
-0.046*** |
-0.036*** |
-0.053*** |
-0.046 |
-0.0762*** |
|
(0.007) |
(0.010) |
(0.011) |
(0.032) |
(0.0243) |
Log(Gross capital formation) |
-1.915*** |
-1.120*** |
-1.045*** |
-0.910 |
-1.405** |
|
(0.458) |
(0.362) |
(0.301) |
(0.854) |
(0.547) |
Constant |
140.5*** |
110.0*** |
115.8*** |
77.97 |
112.2*** |
|
(6.876) |
(11.65) |
(8.772) |
(119.5) |
(11.80) |
Country Fixed Effects |
Yes |
Yes |
Yes |
Yes |
Yes |
Observations |
154 |
133 |
133 |
133 |
133 |
R-squared |
0.955 |
0.921 |
0.939 |
0.855 |
0.912 |
Prob > F |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
Anderson canon. corr. LM statistic |
13.714** |
5.662* |
8.504** |
0.362 |
2.936 |
Sargan statistic |
0.053 |
0.032 |
0.424 |
1.718 |
0.410 |
Kleibergen-Paap rk LM statistic |
11.624** |
5.295* |
10.200*** |
0.416 |
3.061 |
Hansen J statistic |
0.038 |
0.035 |
0.279 |
1.712 |
0.217 |
Note: Standard errors in parentheses. Significance levels *** p<0.01, ** p<0.05, * p<0.1. The parameter estimates of beta are reported. |