Table 6

Linear and time-varying causality results

Null hypothesisTest resultsDecision
Linear Causality Test – Toda-Yamamoto Granger Non-causality Test
Exports Real GDP2.612 (0.978)Partial unidirectional causality from real GDP to exports
Exports Real GDP15.966* (0.068)
Time Varying Causality Test
Exports Real GDPForward expanding: 18.729*** (17.257); 10.924** (10.434)Bidirectional causality
Exports Real GDP
Exports Real GDPRolling window: 90.691*** (16.348); 553.554*** (16.823)Bidirectional causality
Exports Real GDP
Exports Real GDPRecursive expanding: 95.824*** (17.257); 568.532*** (17.536)Bidirectional causality
Exports Real GDP

Note(s):  means exports do not Granger-cause real GDP; means real GDP does not Granger-cause exports. ***, ** and * denote 1%, 5% and 10% levels of significance, respectively

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