Juma, Mary-Ann--Thesis

A would have 14.4% higher GDP than Country B. This indicates that the additional
growth due to increased FDI inflows is indeed economically significant.
Adult population growth and terms of trade continue to have positive and
statistically significant coefficients as in prior regressions, while lagged GDP loses its
significance. The coefficient on the time dummies for 2004-2006 and 2007-2009 remain
positive and significant.
In Regressions 2.4 to 2.6, I include the FDI*mineral-rich interaction term as is
done in Table 3. The coefficient of the interaction term is positive and marginally
significant at the 10% level in Regression 2.4, which excludes control variables. After the
inclusion of control variables and time dummies in the subsequent regressions, however,
the coefficient loses significance, consistent with the results of prior regressions. The
coefficient of standalone FDI remains positive and significant in the regressions which
include control variables and time dummies.
For further robustness, I perform the same analysis above, but exclude
observations that lay 2 standard deviations from the mean values of growth and FDI/GDP
instead. This excludes five additional observations from Equatorial Guinea (1
observation), Liberia (1 observation), Nigeria (1 observation), Sierra Leone (2
observations), and Democratic Republic of Congo (1 observation). I find that this altered
definition of outliers yields very similar results to the previous definition, as shown in
Table 5.
34