202 
Dependent variable: government consumption in % of GDP 1993–97(1)(2) Constant54.86844.817 (4.705)(3.137) Log population 1996–3.054*–2.317 (–2.191)(–1.599) Log per capita income 1996–0.758 (0.469) Population density 1996––0.001 (–1.265) Political stability–0.688–0.557 (–1.499)(–0.936) Freedom index–1.131**–1.508** (–2.666)(–3.429) Remoteness dummy–4.355**–3.867* (–2.905)(–2.417) Latin America dummy–12.016**–9.718** (–5.219)(–4.861) Sub–Saharan Africa dummy–8.737**–5.221** (–3.560)(–2.624) South East Asia dummy–10.514**–7.955** (–4.359)(–3.720) OECD dummy–6.592**–5.675** (–2.779)(–2.620) Adj. R20.5370.538 Number of 
observations6057 
Table A.7: OLS regressions with political and geographic control variables Sources: IMF (national accounts); logarithm of GNP and per capita income from Baratta (1999); urbanization rate from World Bank; Freedom index from Freedom House; political stability from Mauro (1995); remoteness dummy based on differentiation between islands and landlocked countries; t statistics based on White heteroscedasti city-consistent standard errors in parentheses. **significant at the 1% level *significant at the 5% level