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Future Business Journal

Table 3 Pooled OLS, fixed-effect, random-effect, and sys-GMM estimations (panel data)

From: Does strong governance stimulate the effect of economic freedom and financial literacy on financial inclusion? a cross-country evidence

Variables

Pooled OLS

model

Random effect

model

Fixed effect model

SGMM model

Lagged FINDEX

   

0.064

(0.019)

GINDEX

0.053***

0.024

0.024***

0.103***

(0.022)

(0.022)

(0.022)

(0.046)

EF

0.007***

(0.002)

0.002***

(0.001)

0.002***

(0.009)

0.004***

(0.004)

GINDEX * EF

0.014***

(0.013)

0.031**

(0.009)

0.031

(0.009)

0.023***

(0.025)

GDP

0.005

(0.003)

0.004

(0.002)

0.004

(0.001)

0.003

(0.002)

INF

 − 0.009***

(0.003)

 − 0.005***

(0.001)

 − 0.005***

(0.001)

−0.005***

(0.002)

R2

0.348

0.966

0.090

 

Intercept

 − 0.546***

(0.155)

 − 0.571***

(0.078)

 − 0.351

(0.075)

0.488***

(0.264)

Year dummy

No

Yes

Yes

Yes

Country dummy

No

Yes

Yes

Yes

AR (1) 1st diff

   

0.000

AR (2) 1st diff

   

0.110

Sargan test

   

0.912

Hansen test

   

0.115

  1. Note The dependent variable is financial inclusion. Values in parenthesis are the estimated p-values. Hansen J-test refers to the over-identification test for the restrictions in GMM estimation. Wooldridge test for AR(1) is the test of serial correlation for (the idiosyncratic component of) the errors. The AR2 test is the Arellano–Bond test for the existence of the second-order autocorrelation in the first differences.
  2. *, **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively
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