Table 3 Statistical result of dynamic panel estimators

Constant

− 2.138701

1.924087

− 1.11

0.266

− 0.6743974

2.061217

− 0.33

0.744

Lagged FDI inflow

0.3137243

0.0367564

8.54

0.000

0.3034194

0.0505847

6.00

0.000

Inflation

0.0019212

0.0032045

0.60

0.549

0.0007924

0.003317

0.24

0.811

Economic growth

0.0317134

0.0134614

2.36

0.018

0.0427399

0.0216154

1.98

0.048

Infrastructure

0.0065554

0.0152468

0.43

0.667

0.0370526

0.0223601

1.66

0.098

Trade openness

0.0001151

0.0108668

0.01

0.992

− 0.0099175

0.0071899

− 1.38

0.168

Government effectiveness

0.0192966

0.01145

1.69

0.092

0.020486

0.0132359

1.55

0.12

Regulatory quality

0.0123387

0.0116875

1.06

0.291

0.0136294

0.009877

1.38

0.168

Political stability

0.0166983

0.0149774

1.11

0.265

0.0614924

0.0104705

5.87

0.000

External debt

− 0.0000216

0.000486

− 0.04

0.965

− 0.000483

0.0003881

− 1.24

0.213

Human capital

0.0349112

0.0127291

2.74

0.006

0.0120855

0.0086582

1.40

0.163

Financial development

0.0109205

0.0051319

2.13

0.033

0.01147

0.0063869

1.80

0.073

Control over corruption

− 0.0072138

0.0426637

− 0.17

0.866

0.1152395

0.0576547

2.00

0.046

Number of obs = 154

Wald Chi2(13) = 1633.65

Prob > Chi2 = 0.0000

Number of obs = 170

Wald Chi2(13) = 9390.30

Prob > Chi2 = 0.0000

Sargan test of overidentifying restrictions

Chi2(65) = 67.94431

Prob > Chi2 = 0.3772

chi2(78) = 91.62143

Prob > Chi2 = 0.1388

Arellano–Bond test for zero autocorrelation

1st order, Prob > z = 0.0437

2nd order, Prob > z = 0.1335

1^st order, Prob > z = 0.0508

2^nd order, Prob > z = 0.4616