Table 3

Cross-sectional Dependence test and Stationary tests

TestCD-testIm–Pesaran–Shin testFisher unit root test
VariablesCD-test statisticp-valueZ-t-tilde-bar statisticp-valueInverse chi-squaredp-value
FPIin5.091***0.000−6.621***0.000202.8***0.000
FPInet1.1480.251−4.713***0.000157.8***0.000
GDPg28.48***0.000−5.597***0.000151.5***0.000
Sreturn36.35***0.000−5.653***0.000132.5***0.000
Scap15.23***0.000−2.446***0.00769.63***0.000
REER5.698***0.000−5.038***0.000106.0***0.000
Inf10.72***0.000−3.565***0.00095.93***0.000
TB0.240.8100.5350.70346.270.300
EPU26.28***0.000−7.206***0.000229.7***0.000
EPUvo22.57***0.000−9.571***0.000593.0***0.000
WUI56.12***0.000−7.057***0.000180.7***0.000
WUIvo56.12***0.000−8.230***0.000272.3***0.000

Note(s): In CD test: the null hypothesis of cross-section independence, CD ∼ N(0,1), p-values close to zero indicate data are correlated across panel groups. In Im–Pesaran–Shin unit-root test: Ho: All panels contain unit roots and Ha: Some panels are stationary. In Fisher-type unit-root test (Based on Phillips–Perron tests): Ho: All panels contain unit roots, Ha: At least one panel is stationary. *, **, *** are significant levels at 10, 5 and 1%, respectively

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