Table 4

Test of unit root

Panel unit root testMaddala and Wu (1999) Pesaran (Cantwell et al., 2010; Pesaran, 2007) 
VariableLagchi_sqZt-bar
Specification without trend
GDPPCGR0174.031***−6.559***
188.254***−4.320***
FDI053.108***−2.256***
133.341*−1.356*
PTS085.678***−2.888***
155.768***−2.525***
Democ035.654**−1.306*
139.138***−0.566
TLF00.1263.234
10.120−0.539
GFCF042.526***−1.279*
128.022−0.569
FinDev038.144**−1.992**
125.6090.061
Specification with trend
GDPPCGR0138.724***−4.603***
156.762***−2.349***
FDI044.060***−1.150
140.330***−0.260
PTS076.220***−2.341***
148.344***−0.845
Democ029.5580.283
129.0890.699
TLF014.1123.934
114.461−1.570*
GFCF066.248***−2.720***
124.673−2.414***
FinDev064.408***−2.643***
131.463*0.423

Note(s): ***, ** and * denote significance at 1%, 5% and 10% respectively; Null for MW and CIPS tests: series is I(1); MW test assumes cross-sectional independence; CIPS test assumes cross-sectional dependence is in form of a single unobserved common factor

Source(s): Authors' computation

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