Table 3 Panel unit root tests Variable...

Table 3

Panel unit root tests

Variable	Levin–Lin–Chu		Im–Pesaran–Shin		Fisher type (ADF)		Order of integration
Variable	In levels	In first differences	In levels	In first differences	In levels	In first differences	Order of integration
FDEF	−0.714	−9.899***	−1.257	−10.947***	14.864	111.244***	I (1)
LRATE	−0.585	−4.601***	−1.065	−5.871***	12.485	53.610***	I (1)
RGDP	0.756	−4.160***	2.908	−5.162***	1.061	47.616***	I (1)
DEBT	−0.241	−8.768***	0.137	−8.394***	9.185	81.737***	I (1)
GRANT	−0.386	−9.895***	−1.378	−8.990***	14.825	89.530***	I (1)
CAB	−0.223	−8.004***	−1.097	−9.828***	14.439	98.421***	I (1)
CPI	−3.513***		−0.424	−2.172**	14.933	21.723**	I (1)

Variable	Levin–Lin–Chu		Im–Pesaran–Shin		Fisher type (ADF)		Order of integration
Variable	In levels	In first differences	In levels	In first differences	In levels	In first differences	Order of integration
FDEF	−0.714	−9.899***	−1.257	−10.947***	14.864	111.244***	I (1)
LRATE	−0.585	−4.601***	−1.065	−5.871***	12.485	53.610***	I (1)
RGDP	0.756	−4.160***	2.908	−5.162***	1.061	47.616***	I (1)
DEBT	−0.241	−8.768***	0.137	−8.394***	9.185	81.737***	I (1)
GRANT	−0.386	−9.895***	−1.378	−8.990***	14.825	89.530***	I (1)
CAB	−0.223	−8.004***	−1.097	−9.828***	14.439	98.421***	I (1)
CPI	−3.513***		−0.424	−2.172**	14.933	21.723**	I (1)

Note(s): (1) Tabulated are test statistics; (2) *, ** and *** denote statistical significance at the 10%, 5% and 1% levels, respectively; (3) For all unit root tests the null hypothesis is specified as follows: Ho: Panels contain unit roots; (4) All tests are carried out including individual intercept and trend

Source(s): Own elaboration

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