Table 3
Extended Gravity Equations, each column presents a gravity model based on an indicator of governance, as highlighted in the first row
|
Governance |
Voice&Acc. |
Pol. |
Stab. |
Gov. Eff. |
Reg. Qual. |
Rule of Law |
Contr. of Corr. | |||||
|
Quality |
Similarity |
Quality |
Similarity |
Quality |
Similarity |
Quality |
Similarity |
Quality |
Similarity |
Quality |
Similarity | |
|
⅛⅛⅛ | ||||||||||||
|
Log GDP home |
1.20 |
1.20 |
1.21 |
1.21 |
1.18 |
1.18 |
1.22 |
1.22 |
1.21 |
1.21 |
1.19 |
1.19 |
|
Log GDP foreign |
0.87 |
0.87 |
0.86 |
0.86 |
0.84 |
0.85 |
0.85 |
0.85 |
0.86 |
0.86 |
0.86 |
0.86 |
|
Log Distance |
-1.17 |
-1.17 |
-1.17 |
-1.17 |
-1.17 |
-1.16 |
-1.22 |
-1.21 |
-1.18 |
-1.17 |
-1.18 |
-1.18 |
|
Border Dummy |
0.70 |
0.69 |
0.66 |
0.65 |
0.72 |
0.71 |
0.64 |
0.62 |
0.68 |
0.66 |
0.67 |
0.67 |
|
* |
* | |||||||||||
|
Language Dummy |
0.19 |
0.18 |
0.24 |
0.24 |
0.29 |
0.29 |
0.25 |
0.25 |
0.30 |
0.30 |
0.27 |
0.27 |
|
Trade Dummy |
0.94 |
0.93 |
0.89 |
0.88 |
0.86 |
0.85 |
0.88 |
0.85 |
0.91 |
0.89 |
0.88 |
0.88 |
|
Religion Dummy |
0.49 |
0.49 |
0.52 |
0.52 |
0.53 |
0.53 |
0.47 |
0.47 |
0.51 |
0.51 |
0.53 |
0.53 |
|
Colonial Dummy |
0.60 |
0.60 |
0.58 |
0.59 |
0.50 |
0.50 |
0.47 |
0.48 |
0.51 |
0.50 |
0.51 |
0.51 |
|
Governance Home |
0.31 |
0.31 |
0.22 |
0.21 |
0.29 |
0.28 |
0.24 |
0.23 |
0.20 |
0.20 |
0.24 |
0.24 |
|
Governance Foreign |
0.16 |
0.15 |
0.21 |
0.19 |
0.23 |
0.22 |
0.29 |
0.27 |
0.17 |
0.16 |
0.16 |
0.16 |
|
* |
0.07 |
0.02 | ||||||||||
|
Governance Similarity |
0.08 |
0.10 |
0.18 |
0.12 | ||||||||
|
Adjusted R2 |
0.66 |
0.66 |
0.65 |
0.65 |
0.66 |
0.66 |
0.66 |
0.66 |
0.66 |
0.66 |
0.66 |
0.66 |
|
Number of Observations |
9554 |
9554 |
9257 |
9257 |
9257 |
9257 |
9380 |
9380 |
9380 |
9380 |
9138 |
9138 |
Note: * indicates statistical significance at 10% (two sided), ** at 5% *** at 1 %.