Finally, since this study uses a more extensive set of explanatory variables, we are able to
reduce concerns regarding omitted variable problems as one explanation of endogeneity bias.
However, we acknowledge that macroeconomic variables (e.g. governance quality) are a
complex outcome of different endogenous political and institutional factors. Thus, relations
and interactions among our explanatory variables which are difficult to model may still exist
and, thus, raise concerns about endogeneity bias.