Table 2 presents the main results from our regressions. Regression 2.1 is the base
regression without the capital flow variables. The results are consistent with theory
and previous empirical findings. The coefficient on initial GDP per capita is
negative and statistically significant suggesting strong convergence. Education has
a positive effect on growth, but the coefficient is not statistically significant.
Openness to foreign trade has a positive and significant effect on growth. The
coefficients on black market premium and government spending are both negative
and significant