Table 8.

VECM and Granger causality test

Direction of causality
Short-run (Wald test statistic)
Dependent variable∑ΔTt−1∑ ΔIPt−1∑ΔEMt−1∑ΔCPIt−1∑ΔEPUt−1∑ΔEXt−1∑ΔGPRt−1ECMt-1
ΔTt9.65*(0.002)1.42(0.67)2.61(0.27)8.83*(0.01)0.063(0.96)10.38*(0.002)−0.58*(0.01)
ΔIPt1.50(0.47)0.093(0.11)0.44(0.80)12.02*(0.002)7.71*(0.002)0.04(0.21)−0.34* (0.002)
ΔEMt1.49(0.47)  6.57*(0.0038)2.62(0.32)0.09(0.08)0.21 (0.43)
ΔCPIt2.40(0.36)3.48*(0.001) 0.98(0.21)0.77(0.52)0.32(0.22)0.34(0.98)
ΔEPUt0.44(0.80)0.52(0.77)1.21(0.33)0.98(0.36)0.11(0.21)0.45(0.12)−0.67* (0.003)
ΔEXt2.62(0.27)0.21(0.43)0.67(0.43)3.41(0.001)1.54(0.47)0.98(0.1)3.21 (0.98)
ΔGPRt0.73(0.44)0.33(0.91)0.43(0.11)0.05(0.16)0.21(0.98))0.32(0.12)−0.43* (0.011)

Note:

Figure in the parenthesis denotes the probability

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