Table 2

Results of panel cointegration test

VariablesPedroni testKao test
Full sample
 Weighted stats Group stats  
 Panel v-stat−0.23 (0.591)Group rho-stat2.629 (0.995)−2.75 (0.003)**
 Panel rho-stat1.86 (0.968)Group PP-stat−2.02 (0.021)** 
 Panel PP-stat−1.92 (0.027)**Group ADF-stat−2.24 (0.012)** 
 Panel ADF-stat−2.01 (0.022)**   
Africa
 Panel v-stat9.67(0.000)***Group rho-stat1.03 (0.849)−5.00 (0.000)***
 Panel rho-stat−0.14 (0.442)Group PP-stat−1.75 ( 0.039)** 
 Panel PP-stat−3.56 (0.002)**Group ADF-stat−0.05 (0.479) 
 Panel ADF-stat−0.63 (0.264)   
Asia
 Panel v-stat−1.58 (0.943)Group rho-stat1.44 (0.925)−4.97 (0.000)***
 Panel rho-stat0.54 (0.706)Group PP-stat−2.62 (0.003)** 
 Panel PP-stat−2.46 (0.010)**Group ADF-stat−2.46 (0.006)** 
 Panel ADF-stat−2.21 (0.013)**   
Europe
 Panel v-stat−1.90 (0.971)Group rho-stat3.89 (1.000)−5.38 (0.000)***
 Panel rho-stat2.33 (0.990)Group PP-stat−8.05 (0.000)*** 
 Panel PP-stat−4.57 (0.000)***Group ADF-stat−2.12 (0.017)** 
 Panel ADF-stat−3.53 (0.003)**   
North America
 Panel v-stat−0.26 (0.604)Group rho-stat0.12 (0.550)−5.00 (0.000)***
 Panel rho-stat−0.21 (0.415)Group PP-stat−2.35 (0.009)** 
 Panel PP-stat−1.52 (0.024)**Group ADF-stat−2.40 (0.007)** 
 Panel ADF-stat−2.15 (0.013)**   
South America
 Panel v-stat1.35 (0.087)*Group rho-stat−0.68 (0.248)−3.04 (0.001)**
 Panel rho-stat−1.25 (0.104)Group PP-stat−3.83 (0.0001)** 
 Panel PP-stat−4.05 (0.000)***Group ADF-stat−1.80 (0.035)** 
 Panel ADF-stat−1.75 (0.039)**   

Note(s): ****, ** and * denote a rejection of the null hypothesis of no cointegration at 1%, 5% and 10% respectively

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