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adjustment process advanced and developing advanced economies capita income 1961 choice of exchange choice of regime Column countries respectively—see Table countries with fixed country level currency democracy index depreciation developing countries respectively—see Economic Growth ependant errors in parenthesis exchange rate regime fixed effects fixed exchange rate fixed rate regimes flexible rate regimes flexible regimes Foreign Direct Investment GDP Growth government consumption growth Gross Capital Formation gross national income Growth Dependant Variable Huber White robust impact of windstorms include per capita indicates significance initial per capita Inventories investment level Kenneth Rogoff lagged government consumption natural shocks percent levels respectively percent of urban points of GDP Polity IV population density R-squared Ratio of Gross real shocks Regression residual terms regressions linearly include robust standard errors selection bias significant impact Sit+i terms are clustered terms of trade trade growth trade openness urban population White robust standard windstorm occurs World Bank 2003