Table 4.
Support of Hypothesis 2 
Panel least squares regression results on GDP growth
Panel least squares regression results on GDP growth| 11 collectivist countries with INDIVCOLLECT ≤ 65 | 11 individualist countries with INDIVCOLLECT > 65 | |
|---|---|---|
| Intercept | 0.2154 | −0.0689 |
| (2.5572)** | (−1.1672) | |
| LTIREM(−1) | 0.1209 | 0.0143 |
| (3.1739)*** | (0.8672) | |
| INVRATIO | 0.2866 | −0.0652 |
| (2.5127)** | (−0.9867) | |
| LEGAL | −0.0028 | −0.0037 |
| (−0.4338) | (−1.4463) | |
| LABOR | 0.0005 | 0.0059 |
| (0.0965) | (2.9761)*** | |
| LN(EDUCATION) | −0.1369 | 0.0485 |
| (−3.1313)*** | (1.9720)* | |
| INDIVCOLLECT | 0.0002 | −0.0003 |
| (0.2718) | (−0.8032) | |
| No. of panel observations | 55 | 55 |
| Adjusted R2 | 0.1415 | 0.3068 |
| F-statistic | 2.4829** | 4.9835*** |
| Durbin Watson statistic | 1.4812 | 1.9179 |
| 11 collectivist countries with INDIVCOLLECT ≤ 65 | 11 individualist countries with INDIVCOLLECT > 65 | |
|---|---|---|
| Intercept | 0.2154 | −0.0689 |
| (2.5572)** | (−1.1672) | |
| LTIREM(−1) | 0.1209 | 0.0143 |
| (3.1739)*** | (0.8672) | |
| INVRATIO | 0.2866 | −0.0652 |
| (2.5127)** | (−0.9867) | |
| LEGAL | −0.0028 | −0.0037 |
| (−0.4338) | (−1.4463) | |
| LABOR | 0.0005 | 0.0059 |
| (0.0965) | (2.9761)*** | |
| LN(EDUCATION) | −0.1369 | 0.0485 |
| (−3.1313)*** | (1.9720)* | |
| INDIVCOLLECT | 0.0002 | −0.0003 |
| (0.2718) | (−0.8032) | |
| No. of panel observations | 55 | 55 |
| Adjusted R2 | 0.1415 | 0.3068 |
| F-statistic | 2.4829** | 4.9835*** |
| Durbin Watson statistic | 1.4812 | 1.9179 |
Notes:This table presents the panel least squares regression results using random effects for all 22 countries split into two subsamples: 11 collectivist countries and 11 individualist countries. All regressions are run with five years of data: 2001–05 if lagged, and 2002–06 if not lagged. Numbers in parentheses are t-statistics.
*Statistically significant at α = 10 percent level; **statistically significant at α = 5 percent level; ***statistically significant at α = 1 percent level.