Table 5 shows that this variable is significant at the 10% level with and without the east Asia dummy. A one-point increase in this index implies a 6% smaller depreciation from 1997 to 1998. The r-squared is 0.13. when we include foreign exchange reserves, the index of shareholder rights keeps its significance at the 10% level and reserves are not significant. Including import coverage gives the same result: shareholder rights are significant. At the 10% and the macroeconomic control variable is not significant.
For the product of anti-director rights and judicial efficiency. The regression coefficient is significant in all three of the usual specifications. The adjusted r-squared is consistently 0.22-0.23. using the product of anti-director rights and corruption or the product of anti-director rights and the rule of law gives similar results. Using import coverage rather than reserves does not make the governance variable insignificant in any specification, and in one case (the product of corruption and anti-director rights), the effect is to make the governance variable significant at the 5% level.