Table 3 Threshold impact of institutional quality

L. capital flows

0.252***

0.262***

(0.0531)

(0.0561)

Economic freedom index

0.0756**

1.036*

(0.0337)

(0.524)

Economic freedom index²

− 0.00983*

(0.00504)

Interest rate

1.209**

0.881*

(0.464)

(0.435)

Exchange rate

4.091***

3.187***

(1.070)

(0.881)

Urbanisation

− 0.00742

0.00495

(0.00597)

(0.0109)

GDP

0.318*

0.354

(0.177)

(0.254)

Constant

− 12.57**

− 33.85*

(5.247)

(16.98)

Inflexion points

1.88**

Observations

298

298

GMM instrument lag

1

1

Country and time dummies

Yes

Yes

F Stat

[P value]

343.68

(0.000)

285.76

(0.000)

AR(1)

− 3.86

− 3.60

[P value]

(0.000)

(0.000)

AR(2)

0.78

0.73

[P value]

(0.435)

(0.468)

Hansen test

[P value]

13.32

(0.402)

12.77

(0.544)

Sargan test

18.86

18.37

[P value]

(0.171)

(0.191)

Number of groups

20

20