Table 3 Determinants of trade openness in LMICs

Lagged trade openness

0.8431***

(0.1799)

[0.000]

0.7458***

(0.2338)

[0.001]

0.5826***

(0.2454)

[0.018]

0.7840***

(0.1737)

[0.000]

0.6409***

(0.2609)

[0.014]

Real GDP per capita

− 0.0127**

(0.0057)

[0.027]

− 0.0112*

(0.0059)

[0.057]

− 0.0189***

(0.0068)

[0.006]

− 0.0110

(0.0084)

[0.193]

− 0.0507*

(0.0275)

[0.065]

Private credit

0.5550

(0.4744)

[0.242]

–

1.3474**

(0.6650)

[0.043]

0.4124

(0.9808)

[0.674]

0.6934

(0.4614)

[0.133]

Domestic credit

–

− 0.1251

(0.3913)

[0.749]

− 0.8986*

(0.5365)

[0.094]

− 0.1150

(0.6571)

[0.861]

− 0.6371

(0.4716)

[0.177]

Inflation

0.0243*

(0.0144)

[0.091]

0.0219

(0.0158)

[0.165]

0.0071

(0.0173)

[0.681]

0.2433

(0.2331)

[0.297]

0.0290**

(0.0124)

[0.019]

Gross fixed capital formation

1.3684**

(0.5625)

[0.015]

0.9023*

(0.4839)

[0.062]

1.3677**

(0.5589)

[0.014]

1.2539***

(0.4790)

[0.009]

1.1557**

(0.5464)

[0.034]

Population

− 1.346

(4.1337)

[0.745]

2.1210

(3.6910)

[0.565]

− 1.5990

(4.0560)

[0.693]

–

–

Domestic savings

0.7819**

(0.4108)

[0.057]

0.4839

(0.4776)

[0.311]

0.4044

(0.4796)

[0.399]

0.5935

(0.5045)

[0.239]

0.4772

(0.5177)

[0.357]

Real GDP per capita squared

–

–

–

–

7.90e−06

(4.81e−06)

[0.101]

Diagnostics

 Country and time effects

Yes

Yes

Yes

Yes

Yes

 Wald \(\chi^{2}\)

 [p-value]

115.11

[0.000]

103.75

[0.000]

130.31

[0.000]

49.26

[0.000]

314.73

[0.000]

 Sargan test

 [p-value]

17.423

[0.534]

19.145

[0.498]

18.523

[0.423]

19.222

[0.614]

21.234

[0.576]

 AR(2)

 [p-value]

− 4.533

[0.257]

− 4.092

[0.297]

− 5.132

[0.244]

− 4.674

[0.312]

− 5.622

[0.364]

 No. of groups

16

16

16

16

16