Financial development and business growth: A case of the Southern Key Economic Region

Figures & data

Table 1. Descriptive statistics

Variables	Observations	Max	Mean	Min	Standard Deviation
Size (sales—S)	98	6.7323	5.3011	3.9246	0.6508
Financial Development (FID)	98	1.1364	0.5183	0.1047	0.2281
Institutional Quality (INS)	98	1.8876	1.7805	1.6540	0.0396
Human Capital (HUM)	98	5.9967	4.9789	4.0222	0.2811

Source: Author’s calculation

Table 2. Regression results

Variables	Model A	Model B	Model C
LnSt-1	− 0.2224**	− 0.1915**	− 0.2202**
	(0.0898)	(0.0859)	(0.0891)
(LnSt-1)^2	0.0220**	0.0215**	0.0248**
	(0,0073)	(0.0081)	(0.0085)
LnFID	0.9407**	0.8932**	0.8328**
	(0.3082)	(0.3867)	(0.3878)
(LnFID)^2	0.0848	0.2468	0.2350
	(0.1559)	(0.1961)	(0.1947)
LnFID*LnSt-1	− 0.2214**	− 0.2584**	− 0.2484**
	(0.0757)	(0.0925)	(0.0923)
INQ		0.4022*	0.4338**
		(0.2164)	(0.2165)
HUM			− 0.1048
			(0.0909)
Tests
Wald	563.63***	68.45***	70.75***
AR(1)	0.017	0.000	0.000
AR(2)	0.149	0.161	0.144
Sargan	0.104	0.139	0.132
Observation	88	88	88

Note: *, ** and *** denote statistical significance at 10, 5 and 1 percent, respectively; () are standard errors