Table 8.

Johansen cointegration test for pre-and post-financialization log-stock and log-oil series

ftPre financialization Lag order Trace testp-valueλ maxp-value
Log IBOVESPA_1-Log AL_11Rank 036.510.00032.260.000
    Rank 14.250.0394.250.039
Log CHISHA_1-Log AL_11Rank 013.140.1108.830.307
    Rank 14.310.0384.310.038
Log GERDAX30_1-Log AL_11Rank 05.420.7634.930.750
    Rank 10.480.4840.480.484
Log INDBOMB_1-Log AL_11Rank 013.520.0979.550.249
    Rank 13.970.0463.970.046
Log UKFTSE100_1-Log AL_11Rank 04.450.8594.450.805
    Rank 10.000.9780.000.978
Log USNYSE_1-Log AL_11Rank 04.690.8374.540.796
    Rank 10.150.6940.150.694
Post-financialization Lag order Trace testp-valueλ maxp-value
Log IBOVESPA_2-Log AL_22Rank 08.480.4238.070.380
    Rank 10.410.5240.410.524
Log CHISHA_2-Log AL_22Rank 07.420.5364.760.770
    Rank 12.660.1032.660.103
Log GERDAX30_2-Log AL_22Rank 05.310.7754.560.793
    Rank 10.750.3870.750.387
Log INDBOMB_2-Log AL_22Rank 05.070.8005.000.742
    Rank 10.070.7900.070.790
Log UKFTSE100_2-Log AL_22Rank 011.460.1877.710.418
    Rank 13.750.0533.750.053
Log USNYSE_2-Log AL_22Rank 04.960.8124.270.825
    Rank 10.690.4070.690.407

Note:

Table reports the Johansen test of the Stock-oil series to assess the existence of a cointegration relationship and whether a VECM is the best appropriate model to describe their dynamic behavior

Source: Personal elaborations on Datastream (2021) 

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