Table 6

Result of short-run estimator and panel causality test

Explanatory variableExplain variable: lnCF
Coefficient [t-statistics]Prob.Significance
CointEq(−1)−0.013123 [−0.218893]0.8290Insignificant
lnAIi0.004888 [1.571828]0.1317Insignificant
lnET0.025766 [0.139760]0.8902Insignificant
lnEG0.688315** [2.222336]0.0380Significant and positive
lnVAag0.043815 [0.546820]0.5906Insignificant
lnVAi0.171643 [0.948654]0.3541Insignificant
Diagnostic results
  • Root Mean Squared Error (RMSE): 0.0113

  • Log-likelihood score: 174.03

  • Akaike Information Criterion (AIC): −5.055664)

  • Schwarz Criterion (SC): −3.778271

  • Hannan-Quinn (HQ): −4.561686

Dumitrescu-Hurlin panel causality tests (where causality exist)
VariableW-Stat.Zbar-Stat.Prob.
EG → AIpi3.996282.073380.0381
ET → VAi3.390001.589210.1120
VAag → EG3.516051.689870.0911
VAag → VAi3.868661.971460.0487

Note(s): *, **, and *** denotes significant at 1, 5 and 10% level

The lag length 1 used for all variables →denotes one-way causal relationship

Source(s): Authors’ computation

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