Parameter | Estimate |
---|

\(\delta _1\) | 1.1008 (0.0285) |

\(\delta _2\) | − 0.2635 (0.0273) |

\(\beta\) | – |

\(\gamma\) | − 0.0028 (0.0008) |

\(\phi\) | 0.0006 (0.0002) |

\(\theta\) | 0.0018 (0.0004) |

Countries | 175 |

Years | 11 (2005–2016) |

Observations | 1815 |

*R*^{2} | 0.9989 |

SER | 0.0414 |

DW | 1.7894 |

WE (*x*) | [0.059] |

WE (*p*) | [0.252] |

- Unbalanced panel with country fixed effects. External factor proxied by (the log of) terms of trade. Labor Market Freedom Index used as the internal factor
- Countries, number of countries included; years, years included (2005–2016); observations, total number of observations included;
*R*^{2}, adjusted* R* squared; SER, standard error of the regression; DW, Durbin Watson; WE (*x*), Hausman test of weak exogeneity for the external factor (Bolivia); WE (*p*), Hausman test of weak exogeneity for the internal factor (Bolivia). Standard errors in parenthesis. *P*-values in brackets