CARIFORUM and UK EPA Study

Dependent variable: LOG(K)

Excluded

Chi-sq

df

Prob.

LOG(AVGTRD)

1.172601 2.678144 4.249003 1.969818 3.370207 2.585208 1.127269 1.483566

2 2 2 2 2 2 2 2

0.5564 0.2621 0.1195 0.3735 0.1854 0.2746 0.5691 0.4763

LOG(EXR)

GDPG

INFL INT LFG

LOG(OP)

LOG(EXP01)

All

24.97357

16

0.0703

The variables collectively but not individually influence capital formation.

Dependent variable: LOG(OP)

Excluded

Chi-sq

df

Prob.

LOG(AVGTRD)

1.768562 0.435037 6.453820 0.795335 4.016417 1.886734 43.96571 1.308509

2 2 2 2 2 2 2 2

0.4130 0.8045 0.0397 0.6719 0.1342 0.3893 0.0000 0.5198

LOG(EXR)

GDPG

INFL

INT

LOG(K)

LFG

LOG(EXP01)

All

74.09559

16

0.0000

We reject the null that GDP growth and the growth of the labor force in the CARIFORUM countries do not Granger-cause openness or liberalization In the region, which is not to say that the other variables are insignificant. As expected, the growth of the labor force drives export capacity. The other variables do not show identical statistical strength.

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