Impact of foreign direct investment on socio-economic development in belt and road countries

Figures & data

Table 1. List of variables

Variables	Description	Data Source	Nature of variable
GNI per capita	A proxy variable to measure poverty (welfare)	The human development report of UNDP	Dependent
Life expectancy at birth	A proxy variable to capture improved health facilities	World Development Indicators WDIs the World Bank	Dependent
Education	School enrollment (% of gross). A proxy variable for human capital development	The human development report of UNDP	Dependent
FDI net inflow	Foreign direct investment, net inflows (% of GDP)	World Development Indicators WDIs the World Bank	Independent
Economic and Policy Variables
Govt. Expense	Govt. expense/GDP	World Development Indicators WDIs the World Bank	Control
Openness	Import + export /GDP	World Development Indicators WDIs the World Bank	Control
	Infrastructure Indicators
Phone	Fixed telephone subscriptions (per 100 people)	World Development Indicators WDIs the World Bank	Control
Electricity	Access to electricity (% of the population)	World Development Indicators WDIs the World Bank	Control
Landlock	If Land lock = 1	The GeoDist database (Mayer and Zignago, 2011). Geo-ciip	Control
Institutional Quality
CPI	Corruption perception index	Transparency International	Control
Political Risk
PR	Political rights ratings 1.0 and 2.5 were designated Free; between 3.0 and 5.5 Partly Free, and between 5.5 and 7.0 Not Free.	Freedom House	Control
CL	Civil liberties ratings 1.0 and 2.5 were designated Free; between 3.0 and 5.5 Partly Free, and between 5.5 and 7.0 Not Free.	Freedom House	Control

Table 2. Descriptive Statistics

VARIABLES	(1)N	(2)Mean	(3)SD	(4)Min	(5)Max
GNI per capita	952	18,706	21,569	1,059	132,440
Education	952	101.1	12.35	31	150.0
Life expectancy	952	72.15	5.283	54.35	83.15
FDI net inflow	952	4.795	6.651	−41.51	54.65
Govt. expense	952	24.32	12.41	0.673	83.62
Trade openness	952	78.05	43.08	4.101	343.5
Landlock	952	0.250	0.433	0	1
Phone	951	16.89	13.29	0.0181	59.38
Electricity	952	90.74	18.53	11.20	100
CPI	951	37.42	15.09	8	94
PR	952	4.111	2.026	1	7
CL	952	3.935	1.712	1	7

Figure 1. Kernel Distribution Plot

Table 3. Breusch-Pagan/Cook-Weisberg test for Heteroskedasticity

Ho: Constant variance

Variables: fitted values of school enrollment

chi2(1) = 8.43

Prob > chi2 = 0.0037

Ho: Constant variance

Variables: fitted values of life expectancy

chi2(1) = 10.87

Prob > chi2 = 0.0010

Ho: Constant variance

Variables: fitted values of ln_GNI Per Capita

chi2(1) = 19.91

Prob > chi2 = 0.0000

Table 4. Result of Cross-Sectional Dependence Test

		CD Test
Level	Variable	Statistics	Probability
Level	lnGNI Per capita	104.734***	0.000
Level	FDI	22.171***	0.000
Level	Govt. expense	13.824***	0.000
Level	Openness	23.484***	0.000
Level	Landlocked	0	1.00
Level	Phone	20.007***	0.000
Level	Electricity	45.406***	0.000
Level	CPI	45.043***	0.000
Level	PR	0.237	0.813
Level	CL	8.383***	0.000

***p < 0.01, ** p < 0.05, * p < 0.1

Table 5. Result of Panel Unit Root Test

		Levin-Lin Chu Unit Root Test
Level	Variable	Statistics	Probability
Level	lnGNI Per Capita	−3.3208***	0.000
Level	Education	−7.4758***	0.000
Level	Life Expectancy	−23.2258***	0.000
Level	FDI	−11.9270***	0.000
Level	Govt. expense	−5.9748***	0.000
Level	Openness	−7.5381***	0.000
Level	Landlocked	−1.2494*	0.100
Level	Phone	3.215***	0.000
Level	Electricity	−1.2494*	0.100
Level	CPI	3.078***	0.001
1^st diff.	PR	−2.90***	0.000
1^st diff	CL	−1.80***	0.000

***p < 0.01, ** p < 0.05, * p < 0.1

Table 6. Pedroni (2004) test for Cointegration

Variable	Statistics	Probability
Modified Phillips-Perron t	14.4475***	0.0000
Phillips-Perron t	−6.4483***	0.0000
Augmented Dickey-Fuller t	−10.8696***	0.0000

***p < 0.01, ** p < 0.05, * p < 0.1

Table 7. Results Impact of FDI on Socio-Economic Development

VARIABLES	(1)lnGNI	(2)lnGNI	(3)Education	(4)Education	(5)Life Expe.	(6)Life Expe.
FDI	−0.004*	−0.004	0.021	0.038	−0.030**	−0.014
	(−1.69)	(−1.48)	(0.33)	(0.63)	(−2.30)	(−1.20)
Govt.Exp	0.010***	0.009***	−0.045	−0.053	0.022***	0.016**
	(5.98)	(5.63)	(−1.00)	(−1.18)	(2.93)	(2.13)
Openness	−0.001**	−0.001**	−0.022**	−0.021**	−0.001	0.001
	(−2.39)	(−2.32)	(−2.38)	(−2.20)	(−0.26)	(0.42)
Landlock	−0.149***	−0.149***	4.350***	4.306***	−2.340***	−2.373***
	(−3.53)	(−3.61)	(4.48)	(4.45)	(−10.46)	(−10.81)
Phone	0.013***	0.013***	−0.070**	−0.057*	0.042***	0.057***
	(8.12)	(8.20)	(−2.35)	(−1.92)	(4.69)	(6.32)
Electricity	0.019***	0.018***	−0.048	−0.055*	0.151***	0.142***
	(21.19)	(20.36)	(−1.64)	(−1.82)	(23.17)	(21.99)
CPI	0.038***	0.037***	0.047	0.036	0.119***	0.107***
	(20.01)	(18.75)	(1.41)	(1.11)	(13.57)	(12.55)
PR	0.097***	0.102***	−0.169	−0.101	0.049	0.125
	(4.49)	(4.81)	(−0.37)	(−0.22)	(0.43)	(1.16)
CL	−0.001	−0.009	−0.496	−0.602	−0.119	−0.234*
	(−0.05)	(−0.36)	(−0.94)	(−1.15)	(−0.85)	(−1.75)
Constant	5.526***	5.389***	109.139***	108.129***	53.804***	53.462***
	(51.83)	(44.77)	(37.88)	(32.82)	(80.69)	(71.21)
Observations	950	950	950	950	950	950
R-squared	0.757	0.763	0.049	0.055	0.722	0.739
Year FE	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 8. Results Impact of FDI on Gross National Income Per Capita

VARI.	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.055***	0.059***	0.010*	0.011	−0.009***	−0.005***	−0.046***	−0.055***	0.016	−0.005	0.003	0.002
	(7.25)	(7.67)	(1.71)	(1.64)	(−4.03)	(−3.73)	(−4.02)	(−4.33)	(0.86)	(−0.38)	(0.68)	(0.40)
Govt.Exp	0.007***	0.007***	−0.018***	−0.021***	0.008***	0.006***	0.019***	0.019***	0.025***	0.021***	0.000	0.000
	(4.28)	(5.04)	(−2.77)	(−3.04)	(4.35)	(3.87)	(4.02)	(4.04)	(5.85)	(5.39)	(0.14)	(0.01)
Openness	−0.001	0.002	−0.006***	−0.006***	−0.002***	−0.002***	0.002	0.001	0.005	−0.004	−0.005***	−0.006***
	(−1.08)	(1.64)	(−3.64)	(−2.91)	(−2.68)	(−2.82)	(0.85)	(0.44)	(1.31)	(−0.73)	(−6.24)	(−5.74)
Landlock	−0.566***	−0.583***	0.861***	0.821***	0.260***	0.280***					−0.116	−0.074
	(−17.10)	(−16.92)	(7.02)	(5.45)	(4.12)	(4.86)					(−1.18)	(−0.73)
Phone	0.033***	0.042***	0.059***	0.059***	0.005***	0.010***	0.021***	0.020***	−0.050	−0.098	−0.007	−0.015**
	(8.45)	(9.46)	(11.52)	(10.65)	(3.14)	(6.42)	(4.30)	(4.14)	(−0.94)	(−1.43)	(−1.04)	(−2.20)
Electricity	0.013***	0.007***	−0.028***	−0.029***	0.049	0.017	0.027***	0.026***	0.007***	0.004	0.012***	0.014***
	(9.63)	(4.32)	(−3.52)	(−3.47)	(0.50)	(0.19)	(9.99)	(9.63)	(5.52)	(1.63)	(6.37)	(7.76)
CPI	0.027***	0.024***	0.035***	0.032***	0.032***	0.025***	0.036***	0.038***	0.002	−0.014	0.060***	0.065***
	(12.95)	(11.38)	(4.87)	(4.00)	(13.59)	(10.72)	(11.12)	(11.67)	(0.43)	(−1.44)	(12.82)	(12.28)
PR	−0.007	0.011	−0.123***	−0.112**	0.046	0.047	0.300***	0.308***	0.003	−0.011	0.080**	0.067*
	(−0.34)	(0.48)	(−2.94)	(−2.57)	(1.29)	(1.53)	(7.04)	(6.72)	(0.08)	(−0.42)	(2.12)	(1.87)
CL	0.135***	0.082***	0.216***	0.191***	0.031	−0.028	−0.105**	−0.102*	0.097***	0.062	−0.109**	−0.084
	(4.55)	(2.69)	(3.91)	(3.04)	(0.74)	(−0.73)	(−2.03)	(−1.74)	(3.88)	(1.78)	(−1.99)	(−1.60)
Constant	5.896***	6.187***	9.407***	9.549***	3.005	6.309	4.078***	3.917***	6.570***	7.493***	6.582***	6.150***
	(42.73)	(48.55)	(15.72)	(14.20)	(0.31)	(0.70)	(11.68)	(10.63)	(21.25)	(13.05)	(28.92)	(24.67)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.960	0.971	0.733	0.754	0.637	0.705	0.771	0.780	0.932	0.994	0.879	0.893
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 9. Results Impact of FDI on Life Expectancy

VAR	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.273**	0.360**	0.043*	0.043	−0.041**	−0.005	−0.114***	−0.038	0.281	−0.066	0.052*	0.032
	(2.11)	(2.60)	(1.70)	(1.52)	(−2.27)	(−0.28)	(−2.85)	(−0.88)	(0.57)	(−0.58)	(1.67)	(1.37)
Govt.Exp	−0.048	−0.055**	0.037	0.039	0.014	−0.007	−0.007	−0.020	0.243*	−0.008	0.031***	0.033***
	(−1.44)	(−2.11)	(0.80)	(0.83)	(0.65)	(−0.32)	(−0.33)	(−1.07)	(1.84)	(−0.30)	(3.45)	(3.46)
Openness	0.054**	0.144***	−0.117***	−0.125***	−0.034***	−0.034***	0.001	0.016*	0.090	−0.007	0.010***	0.014***
	(2.25)	(5.44)	(−8.63)	(−8.19)	(−5.63)	(−6.56)	(0.19)	(1.95)	(1.10)	(−0.15)	(2.69)	(4.33)
Landlock	−1.806***	−2.163***	1.076*	1.066	2.051***	2.268***					−3.550***	−3.465***
	(−3.04)	(−3.21)	(1.82)	(1.59)	(4.81)	(6.32)					(−8.12)	(−11.32)
Phone	0.339***	0.545***	0.090***	0.080***	0.030*	0.081***	0.041**	0.043***	0.406	0.731	0.016	0.058***
	(6.00)	(8.23)	(3.24)	(3.01)	(1.80)	(4.85)	(2.27)	(2.72)	(0.28)	(1.45)	(0.80)	(2.66)
Electricity	0.118***	−0.013	−0.044	−0.042	0.149	−0.042	0.265***	0.267***	0.101**	0.019	0.131***	0.118***
	(7.12)	(−0.45)	(−0.75)	(−0.74)	(0.42)	(−0.12)	(18.98)	(20.63)	(2.64)	(1.11)	(14.12)	(12.46)
CPI	−0.029	−0.100***	0.174***	0.171***	0.156***	0.086***	0.055***	0.030*	0.260*	−0.089	0.093***	0.071***
	(−1.03)	(−3.50)	(4.01)	(3.55)	(9.06)	(4.47)	(3.29)	(1.82)	(1.76)	(−1.05)	(7.13)	(5.35)
PR	0.405	0.756**	−0.103	−0.098	−0.428	−0.429*	−0.121	−0.165	−0.810	0.697*	0.732***	0.691***
	(1.10)	(2.62)	(−0.40)	(−0.41)	(−1.54)	(−1.71)	(−0.70)	(−1.17)	(−0.69)	(2.10)	(5.42)	(5.40)
CL	−1.283**	−2.424***	0.328	0.271	0.192	−0.373	−0.748***	−1.084***	2.804***	0.245	−0.646***	−0.573***
	(−2.59)	(−5.83)	(0.77)	(0.66)	(0.56)	(−1.25)	(−2.93)	(−5.39)	(3.30)	(1.02)	(−3.09)	(−2.88)
Constant	62.121***	69.075***	72.535***	72.437***	55.681	76.040**	50.858***	50.622***	35.931***	53.337***	54.554***	54.316***
	(28.66)	(27.01)	(17.89)	(16.78)	(1.58)	(2.18)	(26.73)	(29.42)	(3.71)	(10.58)	(52.45)	(49.57)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.773	0.867	0.701	0.722	0.454	0.575	0.825	0.867	0.765	0.999	0.933	0.945
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 10. Impact of FDI on Education

VAR.	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.595	0.737	0.077	0.099	0.162**	0.206***	−0.705***	−0.725***	1.009	0.283	0.210***	0.172***
	(1.33)	(1.57)	(1.17)	(1.64)	(2.30)	(2.83)	(−5.14)	(−4.56)	(0.97)	(0.63)	(3.64)	(3.28)
Govt.Exp	−0.073	−0.084	0.402***	0.359***	−0.371***	−0.394***	0.104	0.098	0.061	0.520**	−0.012	−0.007
	(−0.74)	(−0.83)	(3.63)	(3.05)	(−3.23)	(−3.16)	(1.56)	(1.57)	(0.17)	(2.53)	(−0.22)	(−0.13)
Openness	0.060	0.176	−0.007	0.033	0.012	0.015	0.001	−0.007	0.369**	0.320	−0.035***	−0.028**
	(0.59)	(1.64)	(−0.23)	(1.09)	(0.60)	(0.77)	(0.02)	(−0.24)	(2.16)	(1.36)	(−3.11)	(−2.36)
Landlock	32.279***	31.925***	1.368	−2.087	2.197	2.261					−2.732	−2.480
	(11.19)	(10.75)	(0.95)	(−1.17)	(1.21)	(1.19)					(−1.36)	(−1.17)
Phone	−0.026	0.273	0.295***	0.291***	0.229***	0.273***	0.315***	0.321***	−7.466**	−9.578***	−0.251***	−0.187*
	(−0.15)	(1.30)	(4.47)	(4.55)	(3.14)	(3.16)	(4.12)	(4.11)	(−2.52)	(−4.88)	(−3.52)	(−1.93)
Electricity	0.297***	0.115	−0.450***	−0.448***	2.770	2.770	0.585***	0.586***	−0.123	0.383***	−0.198***	−0.220***
	(6.12)	(1.23)	(−2.80)	(−2.99)	(0.86)	(0.85)	(9.27)	(8.99)	(−1.16)	(4.67)	(−4.42)	(−4.24)
CPI	−0.802***	−0.895***	−0.013	−0.251***	0.074	0.011	−0.199***	−0.195***	−0.748	0.936*	0.133***	0.100*
	(−7.21)	(−7.64)	(−0.20)	(−3.04)	(0.86)	(0.15)	(−3.94)	(−3.58)	(−1.65)	(2.17)	(2.92)	(1.75)
PR	0.957	1.267	2.025***	2.863***	−3.017*	−3.083*	1.958***	2.018***	13.555***	8.284**	2.935***	2.842***
	(0.78)	(1.16)	(4.38)	(8.12)	(−1.76)	(−1.77)	(3.57)	(3.60)	(4.74)	(3.53)	(4.44)	(4.26)
CL	−14.418***	−15.760***	−2.335***	−3.947***	2.055	1.660	−1.678**	−1.630*	0.845	6.116***	−6.088***	−5.900***
	(−8.40)	(−9.39)	(−3.05)	(−5.59)	(1.03)	(0.90)	(−2.08)	(−1.89)	(0.31)	(4.32)	(−5.61)	(−5.27)
Constant	155.120***	164.441***	133.372***	140.038***	−176.800	−175.537	43.836***	42.448***	59.183***	9.211	136.285***	135.387***
	(25.71)	(19.82)	(8.32)	(9.38)	(−0.55)	(−0.54)	(5.23)	(4.60)	(2.97)	(0.34)	(24.23)	(19.80)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.777	0.794	0.453	0.529	0.104	0.111	0.635	0.643	0.753	0.989	0.515	0.533
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 11. Results of FMOLS using Total Sample

VARI	(1)GNI	(2)GNI	(3)Education	(4)Education	(5)Life Exp.	(6)Life Exp.
FDI	−0.005	−0.004	0.006	0.014	−0.032	−0.015
	(−0.58)	(−0.47)	(0.04)	(0.08)	(−0.91)	(−0.37)
Govt.Exp	0.010**	0.009**	−0.086	−0.090	0.021	0.016
	(2.16)	(2.04)	(−0.80)	(−0.84)	(1.00)	(0.69)
Openness	−0.001	−0.001	−0.026	−0.026	−0.000	0.002
	(−0.91)	(−0.87)	(−0.76)	(−0.75)	(−0.02)	(0.20)
Landlock	−0.174	−0.156	3.893	3.853	−2.561***	−2.668***
	(−1.43)	(−1.30)	(1.40)	(1.39)	(−4.61)	(−4.43)
Phone	0.012**	0.013***	−0.219*	−0.222*	0.034	0.048*
	(2.34)	(2.61)	(−1.88)	(−1.87)	(1.47)	(1.87)
Electricity	0.019***	0.018***	−0.040	−0.037	0.148***	0.139***
	(5.72)	(5.49)	(−0.53)	(−0.48)	(9.87)	(8.34)
CPI	0.039***	0.038***	0.109	0.109	0.125***	0.113***
	(8.36)	(8.10)	(1.03)	(1.01)	(5.93)	(4.80)
PR	0.097	0.106*	−0.293	−0.300	−0.023	0.030
	(1.57)	(1.73)	(−0.21)	(−0.21)	(−0.08)	(0.10)
CL	0.002	−0.009	−0.586	−0.605	−0.016	−0.095
	(0.03)	(−0.12)	(−0.33)	(−0.34)	(−0.05)	(−0.25)
Constant	5.496***	5.345***	111.073***	109.090***	54.009***	53.584***
	(15.75)	(14.16)	(13.91)	(12.49)	(33.97)	(28.23)
Obs.	949	949	949	949	949	949
R-squared	0.063	−0.005	0.022	0.024	0.093	0.117
Year FE	No	Yes	No	Yes	Yes	Yes

z-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 12. Results (FMOLS) Impact of FDI on Gross National Income Per Capita

VARI.	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.055***	0.059***	0.010*	0.011	−0.009***	−0.005***	−0.046***	−0.055***	0.016	−0.005	0.003	0.002
	(7.25)	(7.67)	(1.71)	(1.64)	(−4.03)	(−3.73)	(−4.02)	(−4.33)	(0.86)	(−0.38)	(0.68)	(0.40)
Govt.Exp	0.007***	0.007***	−0.018***	−0.021***	0.008***	0.006***	0.019***	0.019***	0.025***	0.021***	0.000	0.000
	(4.28)	(5.04)	(−2.77)	(−3.04)	(4.35)	(3.87)	(4.02)	(4.04)	(5.85)	(5.39)	(0.14)	(0.01)
Openness	−0.001	0.002	−0.006***	−0.006***	−0.002***	−0.002***	0.002	0.001	0.005	−0.004	−0.005***	−0.006***
	(−1.08)	(1.64)	(−3.64)	(−2.91)	(−2.68)	(−2.82)	(0.85)	(0.44)	(1.31)	(−0.73)	(−6.24)	(−5.74)
Landlock	−0.566***	−0.583***	0.861***	0.821***	0.260***	0.280***					−0.116	−0.074
	(−17.10)	(−16.92)	(7.02)	(5.45)	(4.12)	(4.86)					(−1.18)	(−0.73)
Phone	0.033***	0.042***	0.059***	0.059***	0.005***	0.010***	0.021***	0.020***	−0.050	−0.098	−0.007	−0.015**
	(8.45)	(9.46)	(11.52)	(10.65)	(3.14)	(6.42)	(4.30)	(4.14)	(−0.94)	(−1.43)	(−1.04)	(−2.20)
Electricity	0.013***	0.007***	−0.028***	−0.029***	0.049	0.017	0.027***	0.026***	0.007***	0.004	0.012***	0.014***
	(9.63)	(4.32)	(−3.52)	(−3.47)	(0.50)	(0.19)	(9.99)	(9.63)	(5.52)	(1.63)	(6.37)	(7.76)
CPI	0.027***	0.024***	0.035***	0.032***	0.032***	0.025***	0.036***	0.038***	0.002	−0.014	0.060***	0.065***
	(12.95)	(11.38)	(4.87)	(4.00)	(13.59)	(10.72)	(11.12)	(11.67)	(0.43)	(−1.44)	(12.82)	(12.28)
PR	−0.007	0.011	−0.123***	−0.112**	0.046	0.047	0.300***	0.308***	0.003	−0.011	0.080**	0.067*
	(−0.34)	(0.48)	(−2.94)	(−2.57)	(1.29)	(1.53)	(7.04)	(6.72)	(0.08)	(−0.42)	(2.12)	(1.87)
CL	0.135***	0.082***	0.216***	0.191***	0.031	−0.028	−0.105**	−0.102*	0.097***	0.062	−0.109**	−0.084
	(4.55)	(2.69)	(3.91)	(3.04)	(0.74)	(−0.73)	(−2.03)	(−1.74)	(3.88)	(1.78)	(−1.99)	(−1.60)
Constant	5.896***	6.187***	9.407***	9.549***	3.005	6.309	4.078***	3.917***	6.570***	7.493***	6.582***	6.150***
	(42.73)	(48.55)	(15.72)	(14.20)	(0.31)	(0.70)	(11.68)	(10.63)	(21.25)	(13.05)	(28.92)	(24.67)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.960	0.971	0.733	0.754	0.637	0.705	0.771	0.780	0.932	0.994	0.879	0.893
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 13. Results (FMOLS) Impact of FDI on Life Expectancy

VARI.	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.273**	0.360**	0.043*	0.043	−0.041**	−0.005	−0.114***	−0.038	0.281	−0.066	0.052*	0.032
	(2.11)	(2.60)	(1.70)	(1.52)	(−2.27)	(−0.28)	(−2.85)	(−0.88)	(0.57)	(−0.58)	(1.67)	(1.37)
Govt.exp	−0.048	−0.055**	0.037	0.039	0.014	−0.007	−0.007	−0.020	0.243*	−0.008	0.031***	0.033***
	(−1.44)	(−2.11)	(0.80)	(0.83)	(0.65)	(−0.32)	(−0.33)	(−1.07)	(1.84)	(−0.30)	(3.45)	(3.46)
Openness	0.054**	0.144***	−0.117***	−0.125***	−0.034***	−0.034***	0.001	0.016*	0.090	−0.007	0.010***	0.014***
	(2.25)	(5.44)	(−8.63)	(−8.19)	(−5.63)	(−6.56)	(0.19)	(1.95)	(1.10)	(−0.15)	(2.69)	(4.33)
Landlock	−1.806***	−2.163***	1.076*	1.066	2.051***	2.268***					−3.550***	−3.465***
	(−3.04)	(−3.21)	(1.82)	(1.59)	(4.81)	(6.32)					(−8.12)	(−11.32)
Phone	0.339***	0.545***	0.090***	0.080***	0.030*	0.081***	0.041**	0.043***	0.406	0.731	0.016	0.058***
	(6.00)	(8.23)	(3.24)	(3.01)	(1.80)	(4.85)	(2.27)	(2.72)	(0.28)	(1.45)	(0.80)	(2.66)
Electricity	0.118***	−0.013	−0.044	−0.042	0.149	−0.042	0.265***	0.267***	0.101**	0.019	0.131***	0.118***
	(7.12)	(−0.45)	(−0.75)	(−0.74)	(0.42)	(−0.12)	(18.98)	(20.63)	(2.64)	(1.11)	(14.12)	(12.46)
CPI	−0.029	−0.100***	0.174***	0.171***	0.156***	0.086***	0.055***	0.030*	0.260*	−0.089	0.093***	0.071***
	(−1.03)	(−3.50)	(4.01)	(3.55)	(9.06)	(4.47)	(3.29)	(1.82)	(1.76)	(−1.05)	(7.13)	(5.35)
PR	0.405	0.756**	−0.103	−0.098	−0.428	−0.429*	−0.121	−0.165	−0.810	0.697*	0.732***	0.691***
	(1.10)	(2.62)	(−0.40)	(−0.41)	(−1.54)	(−1.71)	(−0.70)	(−1.17)	(−0.69)	(2.10)	(5.42)	(5.40)
CL	−1.283**	−2.424***	0.328	0.271	0.192	−0.373	−0.748***	−1.084***	2.804***	0.245	−0.646***	−0.573***
	(−2.59)	(−5.83)	(0.77)	(0.66)	(0.56)	(−1.25)	(−2.93)	(−5.39)	(3.30)	(1.02)	(−3.09)	(−2.88)
Constant	62.121***	69.075***	72.535***	72.437***	55.681	76.040**	50.858***	50.622***	35.931***	53.337***	54.554***	54.316***
	(28.66)	(27.01)	(17.89)	(16.78)	(1.58)	(2.18)	(26.73)	(29.42)	(3.71)	(10.58)	(52.45)	(49.57)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.773	0.867	0.701	0.722	0.454	0.575	0.825	0.867	0.765	0.999	0.933	0.945
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

Table 14. Results (FMOLS) Impact of FDI on Education

VARI.	(1)SA	(2)SA	(3)CWA	(4)CWA	(5)CEU	(6)CEU	(7)MENA	(8)MENA	(9)SSA	(10)SSA	(11)EAP	(12)EAP
FDI	0.595	0.737	0.077	0.099	0.162**	0.206***	−0.705***	−0.725***	1.009	0.283	0.172***	0.210***
	(1.33)	(1.57)	(1.17)	(1.64)	(2.30)	(2.83)	(−5.14)	(−4.56)	(0.97)	(0.63)	(3.28)	(3.64)
Govt.Exp	−0.073	−0.084	0.402***	0.359***	−0.371***	−0.394***	0.104	0.098	0.061	0.520**	−0.007	−0.012
	(−0.74)	(−0.83)	(3.63)	(3.05)	(−3.23)	(−3.16)	(1.56)	(1.57)	(0.17)	(2.53)	(−0.13)	(−0.22)
Openness	0.060	0.176	−0.007	0.033	0.012	0.015	0.001	−0.007	0.369**	0.320	−0.028**	−0.035***
	(0.59)	(1.64)	(−0.23)	(1.09)	(0.60)	(0.77)	(0.02)	(−0.24)	(2.16)	(1.36)	(−2.36)	(−3.11)
Landlock	32.279***	31.925***	1.368	−2.087	2.197	2.261					−2.480	−2.732
	(11.19)	(10.75)	(0.95)	(−1.17)	(1.21)	(1.19)					(−1.17)	(−1.36)
Phone	−0.026	0.273	0.295***	0.291***	0.229***	0.273***	0.315***	0.321***	−7.466**	−9.578***	−0.187*	−0.251***
	(−0.15)	(1.30)	(4.47)	(4.55)	(3.14)	(3.16)	(4.12)	(4.11)	(−2.52)	(−4.88)	(−1.93)	(−3.52)
Electricity	0.297***	0.115	−0.450***	−0.448***	2.770	2.770	0.585***	0.586***	−0.123	0.383***	−0.220***	−0.198***
	(6.12)	(1.23)	(−2.80)	(−2.99)	(0.86)	(0.85)	(9.27)	(8.99)	(−1.16)	(4.67)	(−4.24)	(−4.42)
CPI	−0.802***	−0.895***	−0.013	−0.251***	0.074	0.011	−0.199***	−0.195***	−0.748	0.936*	0.100*	0.133***
	(−7.21)	(−7.64)	(−0.20)	(−3.04)	(0.86)	(0.15)	(−3.94)	(−3.58)	(−1.65)	(2.17)	(1.75)	(2.92)
PR	0.957	1.267	2.025***	2.863***	−3.017*	−3.083*	1.958***	2.018***	13.555***	8.284**	2.842***	2.935***
	(0.78)	(1.16)	(4.38)	(8.12)	(−1.76)	(−1.77)	(3.57)	(3.60)	(4.74)	(3.53)	(4.26)	(4.44)
CL	−14.418***	−15.760***	−2.335***	−3.947***	2.055	1.660	−1.678**	−1.630*	0.845	6.116***	−5.900***	−6.088***
	(−8.40)	(−9.39)	(−3.05)	(−5.59)	(1.03)	(0.90)	(−2.08)	(−1.89)	(0.31)	(4.32)	(−5.27)	(−5.61)
Constant	155.120***	164.441***	133.372***	140.038***	−176.800	−175.537	43.836***	42.448***	59.183***	9.211	135.387***	136.285***
	(25.71)	(19.82)	(8.32)	(9.38)	(−0.55)	(−0.54)	(5.23)	(4.60)	(2.97)	(0.34)	(19.80)	(24.23)
Obs.	111	111	140	140	280	280	209	209	28	28	182	182
R-squared	0.777	0.794	0.453	0.529	0.104	0.111	0.635	0.643	0.753	0.989	0.533	0.515
Year FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	Yes	No

Robust t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1

List of One Belt one Road Countries

Region	Countries name (besides China)	No. of Countries
Central and WesternAsia	Armenia, Azerbaijan, Georgia, Iran, Islamic Rep., Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, Uzbekistan	10
East Asia & Pacific	Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Mongoloia, Myanmar, Philippines, Singapore, Timor-Leste, Vietnam, Thailand	12
South Asia	Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka	8
Central and EastEurope	Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Macedonia FYR, Moldova, Montenegro, Poland, Russian Federation, Serbia, Slovak Republic, Slovenia, Ukraine	20
Middle East &North Africa	Bahrain, Djibouti, Egypt, Arab Rep., Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syrian Arab Republic, Turkey,United Arab Emirates, West Bank and Gaza, Yemen, Rep.	16
Sub-Saharan Africa	Kenya, Tanzania	2

Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis: New results (65). Cambridge University Press.

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