Model 1 | Model 2 | Model 3 | |
---|---|---|---|

LNRER_{-1} | 0.8481^{***} (0.0713) | 0.8469^{***} (0.0712) | |

LNRER_{-2} | –0.3073^{***} (0.0662) | –0.3108^{***} (0.0663) | |

GDPGR | –0.00030 (0.00116) | 0.000417 (0.0008) | 0.000431 (0.0008) |

LNTOT | 0.3864^{***} (0.06261) | 0.1538^{***} (0.04711) | 0.1563^{***} (0.0468) |

INTDIFF | –0.0068^{***} (0.00093) | –0.00333^{***} (0.00069) | –0.000333^{***} (0.00069) |

GOVEX | –0.00931^{***} (0.00254) | –0.00553^{**} (0.00179) | –0.00551^{***} (0.00178) |

NFA | –0.00045 (0.00035) | –0.00027 (0.00024) | –0.00029 (0.00024) |

ODEP | 0.00258^{**} (0.00138) | 0.00094 (0.0010) | |

YDEP | –0.01777^{***} (0.00271) | –0.00812^{***} (0.00204) | |

OAPOP | 0.01387^{***} (0.00032) | ||

WAPOP | 0.01443^{***} (0.0038) | ||

Constant | 1.7626^{***} (0.20531) | 0.8888^{***} (0.1639) | –0.4795^{**} (0.2391) |

Adjusted R^{2} | 0.7145 | 0.8854 | 0.8857 |

F-stat ( | 18.42 (0.000) | 42.37 (0.000) | 42.51 (0.000) |

Durbin-Watson statistic | 0.8940 | 2.13 | 2.13 |

We estimate a fixed effect model incorporating all variables

LNRER, log of real effective exchange rate index; GDPGR, real GDP growth rate; LNTOT, terms of trade index; INTDIFF, interest rate differential; GOVEX, government expenditure; NFA, net foreign assets