Table 2

Unit root test results

VariableAugmented Dickey-FullerPhillips-Perron
I(0)I(1)I(0)I(1)
LnRGDP −3.052671** (0.0426) −2.954353** (0.0523)
LnEXD −5.091888*** (0.0005) −5.636785*** (0.0001)
LnEXDS 5.433410*** (0.0001) −5.433410*** (0.0001)
LnCORR −15.72053*** (0.0000)−4.847647*** (0.0006) 
LnINFL  −6.152651*** (0.0001) 
LnK −3.507436*** (0.0156) −3.416494*** (0.0192)

Note(s): ADF and PP stand for the Augmented Dicky Fuller and Phillip-Peron unit root tests. The optimal lag selection is determined via the Akaike lag length selection criteria while the *, ** and *** are null hypothesis rejection at 10, 5 and 1% level of significance in that order

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