Dependent variable: RER | | |
|---|
Variables | (1) | (2) |
|---|
TFP.TPDBi | − 0.117∗∗∗ | − 0.082∗∗∗ |
| | (0.018) | (0.015) |
TFP.NTPDBi | − 0.678∗∗∗ | − 0.473∗∗∗ |
| | (0.083) | (0.037) |
TOT | 0.470∗∗∗ | 0.146∗∗∗ |
| | (0.061) | (0.026) |
LLC test | − 6.630∗∗∗ | − 13.719∗∗∗ |
Kao test | − 1.913∗∗ | − 1.913∗∗ |
Obs. | 80 | 104 |
- Notes: See Table 1 for the definitions of the variables. Panel DOLS estimates in (1): all FE estimator regressions include country-specific and time-specific dummy variables as well as the first differences of each explanatory variable (1 lead/lag). Group-mean panel FMOLS estimate proposed by Pedroni (2001) in (2). Sample period 1995–2008. Country sample: Austria, Belgium, Finland, Germany, France, Italy, Netherlands, and Spain. The productivity data stem from the PDBi. The standard errors are reported in parentheses (robust standard errors proposed by Driscoll and Kraay (1998) in (1)). LLC test: Cointegration test following MacDonald and Ricci (2007): t statistic of Levin et al. (2002) (lag length selection by SIC; Bartlett kernel, Newey-West bandwidth). Kao test: cointegration test proposed by Kao (1999): t statistic (lag length selection by SIC; Bartlett kernel, Newey-West bandwidth). *, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively
