Public investment and export diversification in low skilled labor force economies. Evidence from sub Saharan Africa

Figures & data

Table 1. Summary statistics. overall, within and between statistics

Variable		Mean	Std. Dev.	Min	Max	Observations
Agriculture expenditure (per person/year)	Overall	46.795	55.867	0.372	300.105	N = 340
	Between		53.446	4.084	187.170	n = 17
	Within		20.608	−9.064	184.887	T = 20
Education expenditure (per person/year)	Overall	109.423	152.173	3.881	763.262	N = 340
	Between		150.206	8.106	547.464	n = 17
	Within		43.121	−35.442	425.766	T = 20
Manufacturing expenditure (per person/year)	Overall	0.342	1.743	0.001	12.844	N = 340
	Between		1.192	0.005	4.960	n = 17
	Within		1.303	−4.570	8.225	T = 20
Transport and ICT expenditure (per person/year)	Overall	0.446	0.977	0.002	6.077	N = 340
	Between		0.798	0.009	3.115	n = 17
	Within		0.594	−1.384	4.563	T = 20
Extensive Margin Index	Overall	1.089	1.395	−0.015	5.412	N = 340
	Between		1.389	0.020	4.304	n = 17
	Within		0.355	−0.207	2.500	T = 20
Intensive Margin Index	Overall	3.332	1.608	−0.039	5.861	N = 340
	Between		1.623	0.015	5.686	n = 17
	Within		0.317	2.156	4.439	T = 20
Trade as % of GDP	Overall	79.115	40.655	20.964	175.798	N = 340
	Between		39.790	33.752	155.851	n = 17
	Within		12.585	32.339	128.472	T = 20

Figure 1. Sampled countries EMI and IMI compared to SSA and world.

Figure 2. Extensive and intensive margin of exports in 17 SSA countries.

Table 2. Im–Pesaran–Shin unit root test results

Variable	Test Statistic Level	p-Value	Test Statistic First difference	Critical values 5pct
LN_AGRI	−1.8675	−0.0309
LN_EDU	−0.9910	−0.1609	−8.3724	0.0000
LN_TC	−1.6359	−0.9491	−7.9890	0.0000
LN_EMI	−0.0381	0.4848	−7.9290	0.0000
LN_IMI	−0.3433	0.3657	−9.1371	0.0000
LN_MAN	−0.4557	0.3243	−8.1112	−0.0000
LN_TOPP	−1.0920	−0.1374	−8.5063	−0.0000

Table 3. Pedroni’s panel cointegration test results

	EMI model		IMI model
Test statistic	Panel	Group	Panel	Group
V	−2.243		−2.521
rho	2.092	2.904	1.942	3.287
t	−3.605	−6.485	−3.702	−4.759
ADF	3.247	6.229	5.161	5.821

Panel cointegration test includes intercept and trend.

V: the variance ratio, t: Pedroni test, ADF: Augmented Dickey–Fuller test.

Table 4. Vector error correction model results

Variable (in log)		EMI	IMI
Long run	Agriculture Expenditure	−0.325068*** (0.0831154)	−0.0266837** (0.0112623)
	Education Expenditure	−1.270838*** (0.1707087)	−0.1254805*** (0.0211307)
	Transport and Communication Expenditure	−0.4159259*** (0.0463917)	−0.037684*** (0.0079751)
	Manufacturing Expenditure	0.2114871 (0.0640744) ***	0.0500354*** (0.0103187)
	Trade Openness	0.5021069* (0.2627188)	0.0010758 (0.0558055)
Short run	Agriculture Expenditure	0.1012299 (0.0711494)	0.0197406 (0.0309692)
	Education Expenditure	0.1517196 (0.0720061)**	0.0712717*** (0.0257895)
	Transport and Communication Expenditure	0.1011456 (0.1082632)	−0.014816 (0.0356344)
	Manufacturing Expenditure	−0.4096775 (0.408812)	0.0579794 (0.0742534)
	Trade Openness	−0.1424333 (0.14698)	−0.0568169 (0.0729824)
	Constant	−0.064522 (0.3636324)	0.2375591 (0.2384105)
Error Correction Term		−0.2691379 (0.155594)	−0.3576025*** (0.0827006)
CD test static p-value		0.57 0.567	0.09 0.926
Residual		I(0)	I(0)

Number in parentheses is the standard error ***, **, * show 1%, 5% and 10% significance level, respectively.

Table 5. Asymmetry test results

	EMI		IMI
Agriculture expenditure	χ^2	p Value	χ^2	p Value
LR	0.63	0.4266	2.87	0.0903
SR	3.53	0.0602	1.73	0.1879
Education expenditure
LR	0.57	0.4498	1.647	0.2245
SR	1.76	0.184	0.15	0.6984
Transport and ICT expenditure
LR	0.3	0.8713	0.131	0.3232
SR	0.97	0.3242	0.466	0.131
Manufacturing and mining
LR	0.54	0.4631	0.103	0.1347
SR	0.68	0.4105	0.78	0.3773