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Table 1. 
Regression Results
Dependent Variable: ln(NBTT)
ln(NBTT) (−1) 0.7076*** 0.7065*** 0.7238*** 
 (0.2084) (0.2439) (0.1903) 
FDI stock/GDP for South Asia (−1) −0.0060*** −0.0062*** −0.0063*** 
 (0.002) (0.0022) (0.0022) 
FDI stock/GDP for rest of the world (−1) 0.0009** 0.0009** 0.0009** 
 (0.0003) (0.0004) (0.0004) 
Agricultural and raw material exports (%) 0.0020 0.0019 0.0018 
 (0.0016) (0.0018) (0.0015) 
Current account balance (% of GDP) 0.0058*** 0.0057 0.0045*** 
 (0.0015) (0.0040) (0.0015) 
Current account balance (% of GDP) (−1) −0.0028* −0.0029 −0.0020 
 (0.0014) (0.0028) (0.0014) 
Real GDP per capita 0.0000   
 (0.0000)   
Inflation (annual %) 0.0000 0.0000 0.0000 
 (0.0000) (0.0000) (0.0000) 
Manufacturing exports (%) −0.0000   
 (0.0003)   
Real interest rate −0.0000   
 (0.0006)   
Services value-added (% of GDP) 0.0004   
 (0.0008)   
Deviation from long-run growth 0.4356** 0.4453  
 (0.1682) (1.5110)  
Deviation from long-run growth (−1) 0.0258   
 (0.2118)   
Unemployment rate 0.0013 0.0015 0.0012 
 (0.0010) (0.0015) (0.0008) 
Regional Trade Agreement membership −0.0351** −0.0378** −0.0414*** 
 (0.0172) (0.0187) (0.0142) 
No. of instruments 44 39 38 
Hansen test (p-value) 0.994 0.748 0.857 
AR Bond z statistic for AR(1) −2.39 −2.56 −2.46 
AR Bond z statistic for AR(2) −1.14 −0.57 −0.88 
Dependent Variable: ln(NBTT)
ln(NBTT) (−1) 0.7076*** 0.7065*** 0.7238*** 
 (0.2084) (0.2439) (0.1903) 
FDI stock/GDP for South Asia (−1) −0.0060*** −0.0062*** −0.0063*** 
 (0.002) (0.0022) (0.0022) 
FDI stock/GDP for rest of the world (−1) 0.0009** 0.0009** 0.0009** 
 (0.0003) (0.0004) (0.0004) 
Agricultural and raw material exports (%) 0.0020 0.0019 0.0018 
 (0.0016) (0.0018) (0.0015) 
Current account balance (% of GDP) 0.0058*** 0.0057 0.0045*** 
 (0.0015) (0.0040) (0.0015) 
Current account balance (% of GDP) (−1) −0.0028* −0.0029 −0.0020 
 (0.0014) (0.0028) (0.0014) 
Real GDP per capita 0.0000   
 (0.0000)   
Inflation (annual %) 0.0000 0.0000 0.0000 
 (0.0000) (0.0000) (0.0000) 
Manufacturing exports (%) −0.0000   
 (0.0003)   
Real interest rate −0.0000   
 (0.0006)   
Services value-added (% of GDP) 0.0004   
 (0.0008)   
Deviation from long-run growth 0.4356** 0.4453  
 (0.1682) (1.5110)  
Deviation from long-run growth (−1) 0.0258   
 (0.2118)   
Unemployment rate 0.0013 0.0015 0.0012 
 (0.0010) (0.0015) (0.0008) 
Regional Trade Agreement membership −0.0351** −0.0378** −0.0414*** 
 (0.0172) (0.0187) (0.0142) 
No. of instruments 44 39 38 
Hansen test (p-value) 0.994 0.748 0.857 
AR Bond z statistic for AR(1) −2.39 −2.56 −2.46 
AR Bond z statistic for AR(2) −1.14 −0.57 −0.88 

FDI = foreign direct investment, GDP = gross domestic product, NBTT = net barter terms of trade.

Notes: *** = 10% level of statistical significance, ** = 5% level of statistical significance, * = 1% level of statistical significance. Results of one-step System GMM estimation with economy and time fixed effects with cluster-robust standard errors covering 490 observations in 52 developing economies. Source: Authors’ calculations.

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