Juma, Mary-Ann--Thesis

Figure 5: GDP growth against Lagged FDI/GDP (quinquennial averages)
Source: Author’s calculations, UNCTAD (2012)
Figure 5, which plots GDP growth against FDI/GDP using the quinquennial data,
shows that the outliers might not be as influential as in the triennial sample, as
observations with extremely high or low values lie in the same general direction as other
observations. Regressions using the sub-sample that excludes outliers (in this case, 2.5
standard deviation outliers) give very similar results to the specifications on the full
sample, as presented in Table 7.
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