Table 3.
Cross-sectional Dependence test.
| Test |
Cross-sectional Dependence test |
|||
|---|---|---|---|---|
| Group | Full sample | LMEs | UMEs | HIEs |
| SE | 212.4*** | 85.64*** | 68.80*** | 62.47*** |
| Income | 259.9*** | 101.1*** | 78.72*** | 87.67*** |
| Unem | 21.13*** | 7.377*** | 9.435*** | 12.89*** |
| Trade | 83.68*** | 27.08*** | 12.23*** | 56.41*** |
| FDI | 46.83*** | 29.19*** | 11.31*** | 21.87*** |
| TR1 | 5.352*** | 10.41*** | 5.599*** | 29.44*** |
| TR2 | 8.566*** | 14.33*** | 4.650*** | 48.49*** |
| TR3 | 30.21*** | 13.61*** | 9.407*** | 23.74*** |
| TR4 | 6.473*** | 24.65*** | 8.119*** | 29.00*** |
| TR5 | 6.913*** | 3.028*** | 3.406*** | 2.277** |
Notes: In Cross-sectional Dependence test: the null hypothesis of cross-section independence, CD ∼ N(0,1), P-values close to zero indicate data are correlated across panel groups. *, **, *** are significant levels at 10 %, 5 %, and 1 %, respectively.