Appendix
Table 1 : Income gap equation - Basic specifications
Emerging economies All countries
I |
II |
III |
IV |
V |
VI |
VII |
VIII | |
constant |
1.316*** |
0.790 |
0.006 |
1.348*** |
0.046 |
0.144 |
0.254** |
0.173 |
dh |
0.967** |
1.256*** |
1.550*** |
1.007*** |
0.937*** |
1.836*** |
1.901*** |
1.331*** |
dn |
-0.288 |
-0.118 |
1.027 |
-0.282 |
0.143 |
-0.177 |
-0.202 |
0.189 |
dq |
0.983*** |
0.805*** |
0.880*** |
0.264*** |
1.056*** |
0.627*** |
0.754*** |
0.659*** |
dz |
0.276*** |
0.999*** |
0.642*** |
1.187*** | ||||
dp1 |
0.785** |
0.940*** | ||||||
dp2 |
0.842*** |
0.466*** | ||||||
dk_____ |
0.258 |
2.848** |
Note : the Dependent variable is the difference between (log) per-capita income in the EU-15 and log
per-capita income of country i. For definition of variables, see the Appendix..
*,**,*** denotes statistical significance at 10%,5%,and 1% respectively.
Table 2 : Gravity equation
Emerging economies All countries
I |
II |
III |
IV |
V |
VI |
VII |
VIII | |
constant |
-21.820*** |
-19.657*** |
-17.150*** |
-21.272*** |
-14.869*** |
-15.778*** |
-14.506*** |
-12.647*** |
YiYj |
0.987*** |
0.908*** |
0.834*** |
0.980*** |
0.758*** |
0.770*** |
0.756*** |
0.692*** |
D |
-0.948*** |
-0.756*** |
-0.557*** |
-0.967*** |
-0.226*** |
-0.211*** |
-0.260*** |
-0.139*** |
q |
0.050 |
0.004 |
0.109*** |
0.041 |
0.023 |
0.011 |
0.013 |
0.135*** |
z |
0.194*** |
0.180*** |
0.055 |
0.042** | ||||
p1 p2 |
0.663*** |
2.200*** |
-0.004 |
0.144*** |
0.214*** |
0.854*** | ||
locked |
-0.063 |
-0.087 |
Note : The dependent variable is the log of trade (in millions of USD) between country i and the EU-
15. For definition of variables, see the Appendix.
*,**,*** denotes statistical significance at 10%,5%, and 1% respectively.
17
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