Table A2 Unit root test (annual data) At...

Table A2

Unit root test (annual data)

	At level		First difference		Second difference
	ADF	PP	ADF	PP	ADF	PP
CAC
Belize	0.2234	0.2026	−3.2914***	−3.2291***
Costa Rica	−1.4629	−1.2062	−4.0892***	−4.0804***
El Salvador	−1.6477	−1.5035	−2.9697	−2.972	−4.5955***	−5.7338***
Guatemala	−1.5421	−1.6661	−3.1783	−3.2026
Honduras	−1.4517	−1.4405	−5.0409***	−5.0409***	−8.3617***	−8.7989***
Nicaragua	−2.6098	−2.5668	−4.4029***	−4.3307***
Panama	−1.5337	−2.3207	−3.9688***	−3.6785***
Dominican Rep.	−1.2769	−0.8195	−6.2672***	−6.2672***
Mexico	−1.4025	−1.4025	−4.3084**	−4.2884**
SA
Argentina	−1.2002	−1.2328	−5.7988***	−5.8068***
Bolivia	−1.9876	−1.6570	−2.5252	−2.479134	−8.4263***	−8.8799***
Brazil	−2.9581	−2.2785	−3.5817**	−3.5407**
Chile	0.7031	0.5523	−4.6829***	−4.6711***
Colombia	−2.1098	−2.7995	−3.6362***	−3.6362***
Ecuador	−2.5296	−1.9352	−3.9069**	−4.0388**
Paraguay	−1.4477	−1.6156	−2.5053	−2.5332	−7.2359***	−8.0948***
Peru	−1.8593	−2.3501	−3.9128***	−3.5957**
Uruguay	−0.0848	0.2200	−4.3992***	−3.1879**
Venezuela	−2.5774	−2.7868	−5.5779***	−5.5761***
Global outputs
US	−0.8413	0.8752	−4.8834***	−4.7573***
EU	−2.2276	−3.8868	−3.37.80**	−3.2556**
China	0.0032	2.3927	−7.2249***	−15.5898***

	At level		First difference		Second difference
	ADF	PP	ADF	PP	ADF	PP
CAC
Belize	0.2234	0.2026	−3.2914***	−3.2291***
Costa Rica	−1.4629	−1.2062	−4.0892***	−4.0804***
El Salvador	−1.6477	−1.5035	−2.9697	−2.972	−4.5955***	−5.7338***
Guatemala	−1.5421	−1.6661	−3.1783	−3.2026
Honduras	−1.4517	−1.4405	−5.0409***	−5.0409***	−8.3617***	−8.7989***
Nicaragua	−2.6098	−2.5668	−4.4029***	−4.3307***
Panama	−1.5337	−2.3207	−3.9688***	−3.6785***
Dominican Rep.	−1.2769	−0.8195	−6.2672***	−6.2672***
Mexico	−1.4025	−1.4025	−4.3084**	−4.2884**
SA
Argentina	−1.2002	−1.2328	−5.7988***	−5.8068***
Bolivia	−1.9876	−1.6570	−2.5252	−2.479134	−8.4263***	−8.8799***
Brazil	−2.9581	−2.2785	−3.5817**	−3.5407**
Chile	0.7031	0.5523	−4.6829***	−4.6711***
Colombia	−2.1098	−2.7995	−3.6362***	−3.6362***
Ecuador	−2.5296	−1.9352	−3.9069**	−4.0388**
Paraguay	−1.4477	−1.6156	−2.5053	−2.5332	−7.2359***	−8.0948***
Peru	−1.8593	−2.3501	−3.9128***	−3.5957**
Uruguay	−0.0848	0.2200	−4.3992***	−3.1879**
Venezuela	−2.5774	−2.7868	−5.5779***	−5.5761***
Global outputs
US	−0.8413	0.8752	−4.8834***	−4.7573***
EU	−2.2276	−3.8868	−3.37.80**	−3.2556**
China	0.0032	2.3927	−7.2249***	−15.5898***

Note(s): The asterisks ***, ** and * indicate the rejection of the unit root null hypothesis at the 1%, 5% and 10% significance levels, respectively. For ADF, the optimal lag length was elected by Schwarz Info Criterion. The null hypothesis in all tests assumes that variables have unit root

Source(s): Own elaboration

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