Table 1

Unit root tests

VariablesInterceptTrend and intercept
ADFPPADFPP
Level
LITX−2.65 (−3.63)−1.53 (−3.63)−0.18 (−4.25)−0.13 (−4.25)
LHC2.90 (−3.63)3.11 (−3.63)−0.87 (−4.25)1.65 (−4.25)
LINV−1.23 (−3.63)−2.04 (−3.63)−1.43 (−4.25)−2.56 (−4.25)
LEXR−1.91 (−3.63)−1.58 (−3.63)−0.83 (−4.25)−0.36 (−4.25)
LOPI0.02 (−3.63)−0.07 (−3.63)−2.97 (−4.25)−2.09 (−4.25)
LEXD−1.54 (−3.63)−1.59 (−3.63)−1.51 (−4.25)−0.95 (−4.25)
First difference
LITX−2.86*** (−2.61)−2.85*** (−2.62)−4.33* (−4.25)−4.28* (−4.25)
LHC−9.82* (−2.95)−2.60* (−2.95)−10.04* (−3.55)−3.88* (−3.54)
LINV−6.82* (−2.95)−6.88* (−2.95)−4.41 (−3.56)−6.75* (−3.54)
LEXR−3.01** (−2.95)−3.04* (−2.95)−3.71** (−3.54)−3.70** (−3.54)
LOPI−4.80* (−2.95)−5.01* (−2.95)−4.69* (−3.55)−4.92* (−3.54)
LEXD−3.88* (−3.63)−3.88* (−3.63)−4.10** (3.54)−4.11** (−3.54)

Note(s): *, ** and *** indicates rejection of the null hypothesis of unit roots at 1%, 5% and 10% levels of significance levels respectively; and figures in brackets show respective critical value

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