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Future Business Journal

Table 9 Drivers of government spending efficiency in resource-rich and non-resource-rich region

From: Assessing the determinants of government spending efficiency in Africa

DEP VAR: EFF

RESOURCE-RICH

NON-RESOURCE-RICH

TFE

REM

PCSE

TFE

FEM

GLS

GOV

− 0.005

(0.065)

− 0.002

(0.0003)***

− 0.002

(0.0003)***

− 0.027

(0.039)

− 0.004

(0.0003)***

− 0.003

(0.0002)***

GDP

0.0000

(0.0000)

0.0000

(0.000)

0.0000

(0.000)*

0.0000

(0.0000)**

− 0.000

(0.000)***

0.000

(0.000)***

COR

− 1.820

(0.606)***

− 0.011

(0.005)**

− 0.009

(0.004)**

0.777

(0.342)**

0.023

(0.004)***

0.004

(0.002)**

EFFEC

0.150

(0.028)***

0.003

(0.0002)***

0.002

(0.0003)***

0.105

(0.019)***

0.004

(0.000)***

0.001

(0.000)***

RENT

− 0.022

(0.029)

− 0.0002

(0.0002)

0.0002

(0.0001)

0.095

(0.046)**

0.0003

(0.0003)

0.0003

(0.0002)

COL

  

0.8734

(0.016)***

   

Cons

− 3.882

(1.928)***

0.865

(0.011)***

 

− 0.956

(0.968)

0.852

(0.008)***

0.936

(0.008)***

No of Group

23

23

23

17

17

17

Obs. Per Group

21

21

21

21

21

21

Wald Chi

317.59***

 

123,828.60***

126.64***

 

140.00***

No of Obs

483

483

483

357

357

357

F-statistic

    

193.95***

 

R-Square

 

0.4004

0.9803

 

0.7432

 

Haussmann

 

5.76

  

312.26***

 

CS Dependence

 

13.906***

  

7.218***

 
  1. TFE total fixed effect, FEM fixed effect model, REM random effect model, PCSE panel corrected standard error, GLS generalized least square, GOV government spending, GDP size of an economy, RENT resources rent, COR control of corruption, EFFE government effectiveness, COL colonial legacy, and EFF efficiency
  2. ***, **, and * represent 1%, 5%, and 10% levels of significance with standard error in parenthesis
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