Table 3 Empirical findings: estimates of...

Table 3

Empirical findings: estimates of equation (2)

Variable/Model	Parameter	(2)	(2b)	(2c)	(2d)	(2e)
Public investment	Long-run	0.54*** [0.14]	0.43*** [0.14]	0.66*** [0.15]	0.49*** [0.16]	0.67*** [0.18]
Public investment	Short-run	0.54*** [0.14]	0.43*** [0.14]	0.66*** [0.15]	0.49** [0.16]	0.67*** [0.18]
Demand growth	Long-run	0.11 [0.16]	0.48** [0.18]	0.04 [0.16]	0.41* [0.21]	0.04 [0.19]
Demand growth	Short-run	2.16*** [0.16]	2.27*** [0.18]	2.17*** [0.16]	2.26*** [0.21]	2.24*** [0.19]
Inflation rate	Long-run	−0.04* [0.02]	−0.02 [0.02]	−0.03 [0.02]	−0.02 [0.02]	−0.03 [0.02]
Inflation rate	Short-run	−0.04* [0.02]	−0.02 [0.02]	−0.03 [0.02]	−0.02 [0.02]	−0.03 [0.02]
Terms of trade	Long-run		0.77** [0.29]		0.68** [0.31]
Terms of trade	Short-run		0.77 ** [0.29]		0.68** [0.31]
Real exchange rate	Long-run					0.16 [0.30]
Real exchange rate	Short-run					−0.12 [0.30]
Labor cost	Long-run			−0.34* [0.19]	−0.13 [0.18]	−0.40* [0.22]
Labor cost	Short-run			−0.34* [0.19]	−0.13 [0.18]	−0.40* [0.22]
Best model	(1, 0, 2, 0)		(1, 0, 2, 0, 0)	(1, 0, 2, 0, 0)	(1, 0, 2, 0, 0, 0)	(1, 0, 2, 0, 3, 0)
BG test (p-value)	0.70		0.28	0.50	0.25	0.59
Bound F-test	0.08		0.00	0.04	0.01	0.10
Ect. (p-value)	−0.49*** [0.12]		−0.53*** [0.11]	−0.49*** [0.12]	−0.52*** [0.11]	−0.44*** [0.11]

Variable/Model	Parameter	(2)	(2b)	(2c)	(2d)	(2e)
Public investment	Long-run	0.54*** [0.14]	0.43*** [0.14]	0.66*** [0.15]	0.49*** [0.16]	0.67*** [0.18]
Public investment	Short-run	0.54*** [0.14]	0.43*** [0.14]	0.66*** [0.15]	0.49** [0.16]	0.67*** [0.18]
Demand growth	Long-run	0.11 [0.16]	0.48** [0.18]	0.04 [0.16]	0.41* [0.21]	0.04 [0.19]
Demand growth	Short-run	2.16*** [0.16]	2.27*** [0.18]	2.17*** [0.16]	2.26*** [0.21]	2.24*** [0.19]
Inflation rate	Long-run	−0.04* [0.02]	−0.02 [0.02]	−0.03 [0.02]	−0.02 [0.02]	−0.03 [0.02]
Inflation rate	Short-run	−0.04* [0.02]	−0.02 [0.02]	−0.03 [0.02]	−0.02 [0.02]	−0.03 [0.02]
Terms of trade	Long-run		0.77** [0.29]		0.68** [0.31]
Terms of trade	Short-run		0.77 ** [0.29]		0.68** [0.31]
Real exchange rate	Long-run					0.16 [0.30]
Real exchange rate	Short-run					−0.12 [0.30]
Labor cost	Long-run			−0.34* [0.19]	−0.13 [0.18]	−0.40* [0.22]
Labor cost	Short-run			−0.34* [0.19]	−0.13 [0.18]	−0.40* [0.22]
Best model	(1, 0, 2, 0)		(1, 0, 2, 0, 0)	(1, 0, 2, 0, 0)	(1, 0, 2, 0, 0, 0)	(1, 0, 2, 0, 3, 0)
BG test (p-value)	0.70		0.28	0.50	0.25	0.59
Bound F-test	0.08		0.00	0.04	0.01	0.10
Ect. (p-value)	−0.49*** [0.12]		−0.53*** [0.11]	−0.49*** [0.12]	−0.52*** [0.11]	−0.44*** [0.11]

Note(s): (a) Standard errors are in brackets; (b) regressions were performed with the introduction of a time trend; (c) the intercept and trend parameters are not presented due to limited space, but are available upon request; (d) *, ** and *** mean, respectively, statically significant at 10, 5 and 1% and (e) the lag for each variable utilized in our regressions was determined based on the Akaike information criterion (AIC)

Source(s): Table by authors

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