Long-Term Capital Movements



32

Table 2. Determinants of net foreign assets, industrial countries
Panel DOLS regressions with fixed time and country effects

(1)

(2)

(3)

(4)

(5)

CUMCA

1970-98

CUMCA

1980-98

CUMCA+IIP

1970-98

CUMCA+IIP

1980-98

CUMCA
Balanced
1972-97

Log GDP per capita

0.91

(12.63)**

0.91
(7.26)**

0.9
(12.55)**

0.89
(6.71)**

0.94
(11.66)**

Public Debt

-0.125

(3.1)**

-0.05
(0.9)

-0.124
(3.01)**

-0.07

(1.1)

-0.18

(4.54)**

χ2 (Demog.)

30.1
(0.00)**

2.3
(0.51)

22.1
(0.00)**

4.2
(0.24)

43.6
(0.00)**

Adjusted R2

0.89

0.91

0.89

0.93

0.9

Observations

516

389

516

382

390

Countries

22

22

22

22

15

α (POP<15)

-1.47

-0.81

-1.24

-1.2

-2.26

α (POP>64)

-0.66

-0.59

-1.29

-0.44

-0.05

α max

1.41
(50-54)

0.46
(35-39)

1.24
(50-54)

0.63
(30-34)

1.24
(50-54)

α min

-1.49
(15-19)

-0.81

(0-14)

-1.29
(15-19)

-1.2
(0-14)

-2.26

(0-14)

* Dynamic ordinary least squares, t-statistics in parentheses (р-value for the χ2 (Demog.) statistic). * (**)
indicates statistical significance at the 5% (1%) confidence level. In regressions (1) and (2) the dependent
variable is
CUMCA for all countries except Belgium, for which it is the IIP estimate of net foreign assets minus
gold. In regression (3) the dependent variable is the IIP estimate of NFA for Belgium, Canada, Italy, Japan and
United Kingdom, and
CUMCA for all other countries. In regression (4) it is the IIP estimate of NFA for
Austria, Belgium, Canada, Finland, Germany, Italy, Japan, Netherlands, Spain, Sweden, Switzerland, United
Kingdom and United States and
CUMCA for the remaining countries.



More intriguing information

1. The name is absent
2. An Intertemporal Benchmark Model for Turkey’s Current Account
3. Howard Gardner : the myth of Multiple Intelligences
4. The name is absent
5. Wettbewerbs- und Industriepolitik - EU-Integration als Dritter Weg?
6. Banking Supervision in Integrated Financial Markets: Implications for the EU
7. The name is absent
8. Towards a Strategy for Improving Agricultural Inputs Markets in Africa
9. The name is absent
10. The name is absent