We employ the panel-corrected ordinary least squares (OLS-PCSE) estimation of Beck and Katz (1995) to estimate the static model in Eq. (1) taking into the account the error structure of Eq. (1). For the dynamic model in Eq. (2), we employ the generalized method of moment (GMM) estimations of Holtz-Eakin et al. (1988), Arellano and Bond (1991), Arellano and Bover (1995) and Blundell and Bond (1998) in order to deal with simultaneity bias with the inclusion of the lagged dependent variables among the independent variables