Results of error correction model
| Variables | Coefficient | t-Statistic | Probability (p-values) | Significance |
|---|---|---|---|---|
| D (Market size) | −0.54074 | −0.92259 | 0.3747 | Not significant |
| D(Inflation) | −0.5771 | −3.0026 | 0.0149** | Significant and negative |
| D (Infrastructure, railways) | 3.1458 | 2.9742 | 0.0589*** | Significant and positive |
| D (Infrastructure, tele-density) | 0.8974 | 0.2838 | 0.0057* | Significant and positive |
| D (Investment) | 2.6043 | 6.1705 | 0.0002* | Significant and positive |
| D (Trade openness) | 1.4535 | 2.7690 | 0.0218** | Significant and positive |
| CointEq (−1) | −1.1611 | −6.4147 | 0.0001* | |
| Diagnostic tests | t-Statistic | Probability (p-values) | Range | Outcome |
| R2 | 0.7679 | 0 to 1 | High correlation | |
| Adjusted R2 | 0.6905 | 0 to 1 | High correlation | |
| Durbin–Watson stat | 1.9691 | 0 to 4 | No first-order autocorrelation | |
| Heteroscedasticity test (ARCH) | 0.3947 | 0.5377 | Regression model is free from heteroscedasticity | |
| Ramsey RESET test | 1.4776 | 0.1778 | Regression model is correctly specified | |
| Normality test | 0.9164 | 0.6324 | Data is normally distributed |
| Variables | Coefficient | Probability | Significance | |
|---|---|---|---|---|
| D (Market size) | −0.54074 | −0.92259 | 0.3747 | Not significant |
| D(Inflation) | −0.5771 | −3.0026 | 0.0149 | Significant and negative |
| D (Infrastructure, railways) | 3.1458 | 2.9742 | 0.0589 | Significant and positive |
| D (Infrastructure, tele-density) | 0.8974 | 0.2838 | 0.0057 | Significant and positive |
| D (Investment) | 2.6043 | 6.1705 | 0.0002 | Significant and positive |
| D (Trade openness) | 1.4535 | 2.7690 | 0.0218 | Significant and positive |
| CointEq (−1) | −1.1611 | −6.4147 | 0.0001 | |
| Probability ( | Range | Outcome | ||
| 0.7679 | 0 to 1 | High correlation | ||
| Adjusted | 0.6905 | 0 to 1 | High correlation | |
| Durbin–Watson stat | 1.9691 | 0 to 4 | No first-order autocorrelation | |
| Heteroscedasticity test (ARCH) | 0.3947 | 0.5377 | Regression model is free from heteroscedasticity | |
| Ramsey RESET test | 1.4776 | 0.1778 | Regression model is correctly specified | |
| Normality test | 0.9164 | 0.6324 | Data is normally distributed |
Note:
*, ** and *** denotes that variables are statistically significant at 1, 5 and 10%