Regression Results for the South Pacific Using Chamberlain’s II-Matrix Procedure, 1971-90 1/
(Dependent Variable is ln(yt/yt-r))
|Wald Test for No Specific Effects [p-value]||144.599||28.543|
|Number of Observations||36||36||36||36|
The regressions use Chamberlain’s (1984) II-matrix procedure to estimate equations of the form: ln(yi, t/yi, t-r)=Ci-(1-e-βr)ln(yi, t-r) + other variables where yi, t-r is real (1990 A$) per capita GDP in country i at the beginning of each sub-period; yi, t is real per-capita GDP at time t; r is the length of each sub-period; Ci is a country-specific constant term; “other variables” are ln(INVi, t-r), the share of investment in GDP for country i at the beginning of each sub-period, and ln(1+MIGi, t-r), each sub-period's average annual net migration into country i as a share of country i's population at the beginning of each sub-period. See Section IV and the Appendix for further details. Beneath the estimated coefficients are (in parentheses) the associated t-statistics; β is the implied speed of convergence. As explained in Section V: γ refers to -(1-e-βr), the coefficient on ln(yi, t-r); θ' = [θI, θM] is the vector of coefficients on the explanatory variables, where θI is the coefficient on ln(INVi, t-r) and θM is the coefficient on ln(1+MIGi, t-r). “Specific effects” refers to allowance for unobserved, country-specific heterogeneity. The Wald test (and associated X2 with 4 (column (7)) and 8 (column (9)) degrees of freedom) pertains to a test of the null hypothesis of no country-specific effects; the p-value for this test is given in square brackets.