Completed facial reconstruction

	Low income		Middle income
	IPS	LLC	IPS	LLC
Level
lnGDP	-2.53**	-1.56	-2.39	-2.97**
lnFDI	-3.29**	-5.53**	-3.58**	-6.11**
lnH	-2.59**	-3.38**	-1.74	0.70
lnIF	-2.22	-0.86	-2.02	1.20
lnK	-2.64**	-2.74**	-2.58**	-3.02**
lnL	-3.66**	-7.02**	-3.84**	-10.61**
1^st difference
ΔlnGDP	-3.71**	-9.89**	-3.95**	-13.37**
ΔlnFDI	-4.89**	-15.01**	-5.67**	-18.67**
ΔlnH	-3.95**	-12.72**	-3.48**	-9.71**
ΔlnIF	-4.11**	-14.61**	-3.20**	-7.20**
ΔlnK	-5.07**	-16.89**	-4.88**	-17.40**
ΔlnL	-2.97**	-11.08**	-2.53**	-7.68**

Note: ** indicates significant at 5%. At level, intercept and trend are included, but in 1^st difference only intercept is included. Thelag length selected based on SIC.

Table 2: Panel unit root tests.