Appendix B: Variables in cross-country growth regressions
| R.H.S. variables | Studies |
| Capitalism | Hall and Jones (1999) (+, *) |
| Capital account liberalization | Eichengreen and Leblang (2003) (+, *) |
| Corruption | Mauro (1995) (-, *) Welsch (2003) (-, *) |
| Democracy | |
| Minimum levels | Barro (1996, 1997) (+, *) |
| ... Higher levels | Barro (1996, 1997) (-, *) |
| Overall | Alesinaetal. (1996) (?,_) Minier (1998) (+, *) |
| ‘Voice’ | Dollar and Kraay (2003) (-, *) |
| Demographic characteristics | |
| Share of population 15 or below | Barro and Lee (1994) (-, *) |
| Share of population 65 or over | Barro and Lee (1994) (?, ) |
| Growth of 15-65 population share | Bloom and Sachs (1998) (+, *) |
| R.H.S. variables | Studies |
| Education College level Female (level) | Barro and Lee (1994) (-, _) Barro and Lee (1994) (-, *) Barro (1996, 1997) (-, *) Caselli, Esquivel and Lefort (1996) (+, *) Forbes (2000) (-, *) |
| Female (growth) Male (level) | Barro and Lee (1994) (-, *) Barro and Lee (1994) (+, *) Barro (1996) (+, *) Caselli, Esquivel and Lefort (1996) (-, *) Forbes (2000) (+, *) |
| Male (growth) Overall (level) | Barro and Lee (1994) (+, *) Azariadis and Drazen (1990) (+, *) Barro (1991) (+, *) Knowles and Owen (1995) (+, _) Easterly and Levine (1997a) (+, *) Krueger and Lindahl (2001) (+, *) Bils and Klenow (2000) (+, *) |
| Primary level | Sachs and Warner (1995) (+, _) Barro (1997) (-, ) |
| Secondary level Initial income * male schooling Proportion of engineering students Proportion of law students Ethnicity and language Ethno-linguistic fractionalization | Sachs and Warner (1995) (+, _) Barro (1997) (-, *) Murphy, Shleifer and Vishny (1991) (+, *) Murphy, Shleifer and Vishny (1991) (-, *) Easterly and Levine (1997a) (-, *) Sala-i-Martin (1997a, 1997b) (?, _) Alesinaetal. (2003)(-, *) |
| Language diversity Fertility | Masters and McMillan (2001) (-, */_) Barro (1991, 1996, 1997) (-, *) Barro and Lee (1994) (-, *) |
| Finance Stock markets | Levine and Zervos (1998) (+, *) Bekaert, Harvey and Lundblad (2001) (+, *) Beck and Levine (2004) (+, *) |
| Banks Dollarization Depth | Beck and Levine (2004) (+, *) Edwards and Magendzo (2003) (+, _) Berthelemy and Varoudakis (1996) (+, *) Odedokun (1996) (+, *) Ram (1999) (+, _) Rousseau and Sylla (2001) (+, *) Deidda and Fattouh (2002) (+, _) Demetriades and Law (2004) (+, *) |
| Competition * development Repression | Claessens and Laeven (2003) (+, *) Roubini and Sala-i-Martin (1992) (-, *) Easterly (1993) (-, *) |
| Sophistication | King and Levine (1993) (+, *) Levine and Zervos (1993) (+, robust) |
| R.H.S. variables | Studies |
| Easterly and Levine (1997a) (+, *) Sala-i-Martin (1997a, 1997b) (?, _) | |
| Credit Growth rate | Levine and Renelt (1992) (+, not robust) De Gregorio and Guidotti (1995) (+, *) |
| Volatility Foreign direct investment Fraction of mining in GDP Geography Absolute latitude | Levine and Renelt (1992) (+, not robust) Blonigen and Wang (2004) (+, _) Hall and Jones (1999) (+, *) Sala-i-Martin (1997a, 1997b) (+, *) Bloom and Sachs (1998) (+, *) Masters and McMillan (2001) (-, _) Easterly and Levine (2001) (+, *) Rodrik, Subramanian and Trebbi (2004) (+, *) |
| Disease ecology | McCarthy, Wolfand Wu (2000) (+, *) McArthur and Sachs (2001) (+, *) Easterly and Levine (2001) (-, *) Sachs (2003) (-, *) |
| Frost days | Masters and McMillan (2001) (+, *) Masters and Sachs (2001) (+, *) |
| Land locked Coastline (length) | Easterly and Levine (2001) (-, *) Bloom and Sachs (1998) (+, *) Masters and Sachs (2001) (+, *) Bloom, Canning and Sevilla (2003) (+, *) |
| Arable land Rainfall | Masters and Sachs (2001) (+, *) Masters and Sachs (2001) (+, *) Bloom, Canning and Sevilla (2003) (+, *) |
| Variance of rainfall Maximum temperature Government Consumption (growth) Consumption (level) | Bloom, Canning and Sevilla (2003) (-, *) Bloom, Canning and Sevilla (2003) (-, *) Kormendi and Meguire (1985) (+, _) Barro (1991)(-, *) Sachs and Warner (1995) (-, *) Barro (1996) (-, *) Caselli, Esquivel and Lefort (1996) (+, *) Barro (1997) (-, *) Acemoglu, Johnson and Robinson (2002) (-, ) |
| Deficits | Levine and Renelt (1992) (-, not robust) Fischer (1993)(-, *) Nelson and Singh (1994) (+, _) Easterly and Levine (1997a) (-, *) Bloom and Sachs (1998) (+, *) |
| Investment | Barro (1991) (+, _) Sala-i-Martin (1997a, 1997b) (?, _) Kelly (1997) (+, *) |
| Various expenditures Military expenditures | Levine and Renelt (1992) (-, not robust) Aizenman and Glick (2003) (-, *) Guaresma and Reitschuler (2003) (-, *) |
| R.H.S. variables | Studies |
| Military expenditures under threat Various taxes Growth rate of the G-7 countries in the previous period | Aizenman and Glick (2003) (+, *) Levine and Renelt (1992) (?, not robust) Alesina et al. (1996) (+, *) Easterly et al. (1993) (+, _) Alesina et al. (1996) (+, */ ) |
| Health Life expectancy | Bloom, Canning and Sevilla (2004) (+, *) Barro and Lee (1994) (+, *) Bloom and Malaney (1998) (+, *) Bloom and Sachs (1998) (+, *) Bloom and Williamson (1998) (+, *) Hamoudi and Sachs (2000) (+, *) Gallup, Mellinger and Sachs (2000) (+, *) |
| Change in malaria infection rate Adult survival rate Industrial structure % Small and medium enterprises Ease of entry and exit Inequality Democratic countries Non-democratic countries Overall | Gallup, Mellinger and Sachs (2000) Bhargava et al. (2001) Beck, Demirguc-Kunt and Levine (2003) (+, _) Beck, Demirguc-Kunt and Levine (2003) (+, *) Persson and Tabellini (1994) (-, *) Persson and Tabellini (1994) (+, _) Alesina and Rodrik (1994) (-, *) Forbes (2000) (+, *) Knowles (2001) (-, *) |
| Inflation Growth Level | Kormendi and Meguire (1985) (-, *) Levine and Renelt (1992) (-, not robust) Levine and Zervos (1993) (?, not robust) Barro (1997) (-, *) (in the range above 15%) Bruno and Easterly (1998) (-, *) Motley (1998) (-, *) Liand Zou (2002)(-, *) |
| Variability | Levine and Renelt (1992) (-, not robust) Fischer (1993) (-, *) Barro (1997)(+, ) Sala-i-Martin (1997a, 1997b) (?, _) |
| Infrastructure proxies | Hulten (1996) (+, *) Easterly and Levine (1997a) (+, *) Esfahani and Ramirez (2003) (+, *) |
| Initial income | Kormendi and Meguire (1985) (-, *) Barro (1991)(-, *) Sachs and Warner (1995) (-, *) Harrison (1996) (?, _ ) Barro (1997) (-, *) Easterly and Levine (1997a) |
| Investment ratio | Barro (1991)(+, *) Barro and Lee (1994) (+, *) |
| R.H.S. variables | Studies |
| Sachs and Warner (1995) (+, *) Barro (1996) (+, _) Caselli, Esquivel and Lefort (1996) (+, *) Barro (1997) (+, _) | |
| Investment type Equipment or fixed capital | DeLong and Summers (1993) (+, *) Blomstrom, Lipsey and Zejan (1996) (-, _) Sala-i-Martin (1997a, 1997b) (+, *) |
| Non-equipment Labor Productivity growth Productivity quality Labor force part. rate Luck External debt dummy External transfers Improvement in terms of trade | DeLong and Summers (1991) (+, *) Lichtenberg (1992) (+, *) Hanushek and Kimko (2000) (+, *) Blomstrom, Lipsey and Zejan (1996) (+, *) Easterly et al. (1993) (-, _) Easterly et al. (1993) (mixed, _) Easterly et al. (1993) (+, *) Fischer (1993) (+, *) Barro (1996) (+, *) Caselli, Esquivel and Lefort (1996) (+, *) Barro (1997) (+, *) Blattman, Hwang and Williamson (2003) (+, *) Coulombe and Lee (1995) (+, *) |
| Money growth Neighboring countries’ education proxies, initial incomes, investment ratios and population growth rates Political instability proxies | Kormendi and Meguire (1985) (+, _) Ciccone (1996) (+, *) Barro (1991) (-, *) Barro and Lee (1994) (-, *) Sachs and Warner (1995) (-, _) Alesinaetal. (1996)(-, *) Caselli, Esquivel and Lefort (1996) (-, *) Easterly and Levine (1997a) (-, *) |
| Political rights and civil liberties indices Civil liberties | Kormendi and Meguire (1985) (+, _) Levine and Renelt (1992) (?, not robust) Barro and Lee (1994) (-, *) |
| Overall Political rights | Sachs and Warner (1995) (+, *) Barro (1991) (?,_) Barro and Lee (1994) (+, *) Sala-i-Martin (1997a, 1997b) (+, *) |
| Political institutions Constraints on executive Judicial independence Property rights ICRG index Expropriation risk | Acemoglu, Johnson and Robinson (2001) (+, *) Feld and Voigt (2003) (+, *) Knack (1999) (+, *) Acemoglu, Johnson and Robinson (2001) (+, *) McArthur and Sachs (2001) (+, *) |
| R.H.S. variables | Studies |
| Population Density Growth | Sachs and Warner (1995) (+, _) Kormendi and Meguire (1985) (-, *) Levine and Renelt (1992) (-, not robust) Mankiw, Romer and Weil (1992) (-, *) Barro and Lee (1994) (+, _) Kelley and Schmidt (1995) (-, *) Bloom and Sachs (1998) (-, *) |
| Price distortions Consumption price | Easterly (1993) (+, _) Harrison (1996) (-, *) |
| Investment price | Barro (1991)(-, *) Easterly (1993) (-, *) |
| Price levels Consumption price Investment price | Easterly (1993) (+, _) Easterly (1993) (-, *) Sachs and Warner (1995) (-, *) |
| Real exchange rate Black market premium | Levine and Renelt (1992) (-, not robust) Barro and Lee (1994) (-, *) Barro (1996) (-, *) Harrison (1996) (-, *) Easterly and Levine (1997a) (-, *) Sala-i-Martin (1997a, 1997b) (-, *) |
| Distortions | Dollar (1992)(-, *) Easterly (1993)(-, ) Harrison (1996) (-, ) Sala-i-Martin (1997a, 1997b) (-, *) Acemoglu, Johnson and Robinson (2002) (-, ) |
| Variability Regional effects Absolute latitude East Asia dummy | Dollar (1992)(-, *) Barro (1996) (+, *) Barro and Lee (1994) (+, _) Barro (1997)(+, ) |
| Former Spanish colonies dummy Latin America dummy | Barro (1996) (-, *) Barro (1991)(-, *) Barro and Lee (1994) (-, *) Barro (1997)(-, ) Easterly and Levine (1997a) (-, *) Sala-i-Martin (1997a, 1997b) (-, *) |
| Sub-Saharan Africa dummy | Barro (1991)(-, *) Barro and Lee (1994) (-, *) Barro (1997)(-, ) Easterly and Levine (1997a) (-, *) Sala-i-Martin (1997a, 1997b) (-, *) |
| Religion Buddhist Catholic | Barro (1996) (+, *) Sala-i-Martin (1997a, 1997b) (-, *) |
| R.H.S. variables | Studies |
| Masters and Sachs (2001) (+, *) | |
| Confucian Muslim | Barro (1996) (+, *) Barro (1996) (+, *) Sala-i-Martin (1997a, 1997b) (+, *) Masters and Sachs (2001) (+, _) |
| Protestant | Barro (1996) (+, *) Sala-i-Martin (1997a, 1997b) (-, *) Masters and Sachs (2001) (+, *) |
| Religious belief Attendance Rule of law indices | Barro and McCleary (2003) (+, *) Barro and McCleary (2003) (-, *) Barro (1996) (+, *) Acemoglu, Johnson and Robinson (2001) (+, *) Easterly and Levine (2001) (-, *) Dollar and Kraay (2003) (+, _) Alcala and Ciccone (2004) (+, _/*) Rodrik, Subramanian and Trebbi (2004) (+, *) |
| Scale effects Total area | Barro and Lee (1994) Sala-i-Martin (1997a, 1997b) (?, _) |
| Total labor force | Barro and Lee (1994) Sala-i-Martin (1997a, 1997b) (?, _) |
| Social capital and related Social “infrastructure” Citizen satisfaction with government Civic participation | Hall and Jones (1999) (+, *) Helliwell and Putnam (2000) (+, *) (within Italy) Helliwell (1996) (-, *) (within Asia) Knack and Keefer (1997) (+, *) |
| Groups - as defined by Putnam, Leonardi and Nanetti (1993) Groups - as defined by Olson (1982) Institutional performance Civic community (index of participation, newspaper readership, political behavior) Trust | Keefer and Knack (1997) (-, _), Keefer and Knack (1997) (+, _), Helliwell and Putnam (2000) (+, *) (Italy) Helliwell and Putnam (2000) (+, *) (Italy) Granato, Inglehart and Leblang (1996) (+, *) Helliwell (1996) (-, *) (Asia) Knack and Keefer (1997) (+, *), LaPortaetal. (1997) (+, *) Beugelsdijk and van Schalk (2001) (+, _) Zak and Knack (2001) (+, *) |
| Social development index Extent of mass communication Kinship Mobility Middle class Outlook Social capital (WVS) Social capital (WVS) Social achievement norm | Temple and Johnson (1998) Temple and Johnson (1998) Temple and Johnson (1998) Temple and Johnson (1998) Temple and Johnson (1998) Temple and Johnson (1998) Rupasingha, Goetz and Freshwater (2000) (+, *) Whiteley (2000) (+, *) Granato, Inglehart and Leblang (1996) (+, *) |
| R.H.S. variables | Studies |
| Swank (1996) (-, *) | |
| Capability Trade policy indices Import penetration Leamer’s intervention index Years open 1950-1990 | Temple and Johnson (1998) (+, *) Levine and Renelt (1992) (?, not robust) Levine and Renelt (1992) (-, not robust) Sachs and Warner (1996) (+, *) Sala-i-Martin (1997a, 1997b) (+, *) |
| Openness indices (growth) Openness indices (level) | Harrison (1996) (+, *) Levine and Renelt (1992) (?, not robust) Sachs and Warner (1995) (+, *) Harrison (1996) (+, *) Wacziarg and Welch (2003) (+, *) |
| Outward orientation | Levine and Renelt (1992) (?, not robust) Sala-i-Martin (1997a, 1997b) (?, _) |
| Tariff | Barro and Lee (1994) (-, _) Sala-i-Martin (1997a, 1997b) (?, _) |
| Liberalization Trade statistics Fraction of export/import/total trade in GDP | Ben-David (1993, 1996) (?, _) Levine and Renelt (1992) (+, not robust) Easterly and Levine (1997a) (?, _) Frankel and Romer (1999) (+, *) Dollar and Kraay (2003) (+, _) Alcala and Ciccone (2004) (+, *) Rodrik, Subramanian and Trebbi (2004) (+, ) |
| Fraction of primary products in total exports | Sachs and Warner (1996) (-, *) Sala-i-Martin (1997a, 1997b) (-, *) |
| Growth in export-GDP ratio | Feder(1982)(+, *) Kormendi and Meguire (1985) (+, *) 20+ studies others |
| FDI inflows relative to GDP Machinery and equipment imports Volatility of shocks Growth innovations | Blomstrom, Lipsey and Zejan (1996) Romer (1993) (+, *) Kormendi and Meguire (1985) (-, *) Ramey and Ramey (1995) (-, *) |
| Monetary shock War Casualties per capita Dummy | Kormendi and Meguire (1985) (-, *) Easterly et al. (1993) (-, _) Barro and Lee (1994) (-, _) Easterly and Levine (1997a) (?, _) Sala-i-Martin (1997a, 1997b) (-, *) |
| Duration | Barro and Lee (1994) (+, _) |
+/- = sign of coefficient in the corresponding growth regression. ? = sign not reported.
= claimed to be significant.
_ = claimed to be insignificant.