Table 4

Results of bivariate BEKK-GARCH model for African countries

Egypt/MoroccoGhana/NigeriaUganda/KenyaBotswana/South Africa
Panel A: Model estimates
C(1,1)0.057 (0.139)0.935 (0.000)0.050 (0.059)0.031 (0.041)
C(2,1)0.291 (0.051)−0.025 (0.216)−0.051 (0.000)0.545 (0.000)
C(2,2)−0.000 (0.999)0.143 (0.000)−0.000 (0.999)−0.086 (0.347)
A(1,1)1.296 (0.000)0.414 (0.000)0.454 (0.000)−0.215 (0.000)
A(1,2)−0.020 (0.346)0.018 (0.310)0.033 (0.044)−1.661 (0.000)
A(2,1)2.850 (0.000)−0.021 (0.724)−0.465 (0.000)0.079 (0.000)
A(2,2)−0.009 (0.806)0.511 (0.000)0.104 (0.000)0.738 (0.000)
B(1,1)0.407 (0.000)0.485 (0.000)0.506 (0.000)−1.117 (0.000)
B(1,2)−0.003 (0.887)0.009 (0.739)−0.437 (0.000)−3.324 (0.000)
B(2,1)0.016 (0.906)0.041 (0.346)1.223 (0.000)0.058 (0.031)
B(2,2)0.564 (0.358)0.863 (0.000)0.670 (0.000)0.611 (0.000)
Panel B: Wald test for volatility spillover
1 → 21.10 (0.576)0.90 (0.637)1235.8 (0.000)774.08 (0.000)
2 → 11033.51 (0.000)4.43 (0.108)1402.3 (0.000)80.81 (0.000)
Panel C: Post estimation diagnostic tests
MvLM (10)19.11 (0.038)0.70 (0.994)0.17 (1.000)2.32 (0.993)
MvQ (10)1.36 (0.999)0.03 (0.999)0.45 (1.000)20.22 (0.072)

Note(s): → indicates direction of volatility spillover. MvLM and MvQ are multivariate ARCH-LM and Ljung–Box Q-statistic for null hypotheses of no ARCH effect and no autocorrelation in multivariate GARCH model squared residuals and residuals, respectively. Lag lengths are displayed as (.)

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