Global Flow of Foreign Aid and Change in Recipients’ Local Labor Institutions
Table 5
Estimation results of regressing the overall labor institutional distance on actual vs. predicted economic aid flow.
Pooled OLS
Fixed Effect
Random Effect
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Actual_Aid_Econ
−0.0666 (−2.152)
−0.0920 (−2.926)
−0.0920 (−2.138)
−0.0846 (−1.993)
Predicted_Aid_Econ
−0.0360 (−2.276)
−0.0390 (−2.502)
−0.0390 (−2.205)
−0.0487 (−2.742)
LN_GDP
−1.3864 (−19.522)
−1.3852 (−19.475)
−1.3864 (−8.388)
−1.3852 (−8.373)
−0.1491 (−6.526)
−0.1500 (−6.546)
LN_GDPC
1.2385 (31.417)
1.2370 (31.358)
1.2385 (13.307)
1.2370 (13.290)
0.6216 (21.430)
0.6221 (21.406)
Trade
0.0506 (6.654)
0.0499 (6.550)
0.0506 (2.953)
0.0499 (2.906)
0.0286 (1.859)
0.0280 (1.815)
LifeExp
−0.1007 (−7.595)
−0.1004 (−7.550)
−0.1007 (−3.473)
−0.1004 (−3.455)
−0.1490
−0.1488
(−6.992)
(−6.962)
Urban
−0.6099 (−22.479)
−0.6078 (−22.349)
−0.6099 (−8.425)
−0.6078 (−8.391)
−0.4075 (−11.906)
−0.4076 (−11.868)
No. of observations
51,858
51,698
51,858
51,698
51,858
51,698
51,858
51,698
F statistics
187.4500
186.2844
251.3988
249.3573
94.0233
93.0740
N/A
N/A
Adjusted
0.8717
0.8717
0.8785
0.8786
0.2068
0.2063
N/A
N/A
Hausman Test value
N/A
N/A
N/A
N/A
<0.01
<0.01
<0.01
<0.01
Notes: All regressions include an intercept and are estimated by pooled OLS, fixed effect, or random effect models, with White’s correction of heteroskedasticity. t-statistics are in parentheses. ,, and denote significance at 1%, 5%, and 10% levels, respectively. Time- and pair-country-fixed effects are included in all regressions, but not reported. The number of observations in the specifications for predicted aid is slightly smaller due to a data availability problem in the predictive regression.
