4094 Ann Harrison and Andrés Rodríguez-Clare

Table 5 Incomes, trade shares, and import tariffs in a panel of non-OECD countries—Cont'd

Using import tariffs as a measure of openness, 1960-2000

Dependent variable: ln income per capita, in PPP $1993
(4)
(1) (2) (3) OLS (5) (6) (7) (8)
OLS No OLS No OLS Includes Includes IV No IV No IV Includes IV Includes
controls controls controls controls controls controls controls controls

3-Year lag !3.586 !0.721 !0.298 !0.137

import tariff (0.377)""" (0.142)""" (0.117)"" (0.119)
Average !4.830 !4.830 !0.635 !0.338
import tariff (0.441)""" (0.441)""" (0.328)" (0.379)
Country No Yes Yes Yes No Yes Yes Yes
fixed effects?
Time fixed No No Yes Yes No No Yes Yes
effects
Observations 1617 1617 1261 1485 1415 1415 1125 1306

Notes: Source is Aisbett, Harrison, and Zwane (2005), as reported in Harrison (2007). Huber robust standard errors in parenthesis. Data are annual data, with one
observation for each country and year. The dependent variable is the log of income per capita, in PPP $1993. Trade share is the share of exports plus imports in GDP.
Import tariffs are import revenues divided by the value of imports. Both are taken from the World Bank’s indicators. OLS indicates ordinary least squares and IV
indicates instrumental variables. All regressions exclude OECD high-income countries. Columns (3) and (7) include controls for inflation, government expenditure in
GDP, currency crises, investment in GDP, and the fraction of the population that is literate. Columns (4) and (8) include controls for inflation, government
expenditure, and currency crises. In instrumental variable regressions, trade share is instrumented using 3-year lagged value, and import tariff is instrumented using
3-year lagged value.
"
Huber robust standard errors in parenthesis with """ indicating significance at 1%, "" indicating significance at 5% and " indicating significance at 10%.