Table VI

Results of long-run and short-run coefficients employing the ARDL approach

Dependent variable is lnWP: ARDL (1, 0, 0, 0) selected based on AIC
VariableCoefficientSET-ratiop-value
Panel A: long-run estimation
lnAR0.786398***0.2477253.1744810.0028
lnSP0.121680***0.0154327.8849820.0000
lnFER0.192283***0.0456704.2102720.0001
C0.6580341.9477730.3378390.7372
Panel B: short-run estimation
ΔlnAR0.877174***0.2967472.9559630.0051
ΔlnSP0.135726***0.0239755.6612460.0000
ΔlnFER0.214479***0.0549573.9026360.0003
ECM (−1)−1.115432***0.126128−8.8436610.0000
Panel C: residual diagnostic tests
R20.985502   
Adjusted R20.984088   
Durbin–Watson stat1.863229   
F-statistic12.1708***   
χ2 SERIAL0.2058 (0.8148)   
χ2 NORMAL3.1647 (0.2054)   
χ2 ARCH0.0502 (0.9511)   
χ2 White0.7241 (0.7268)   
χ2 RESET0.6688 (0.5074)   

Note: ***Significant at 1 percent

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