Table 2.
Pearson's Pairwise correlation matrix and VIF value.
| ZS | NPL | LID | LIF | HHI | BCT | GDP | PPG | CISI | LRI | WGI | NII | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Z-Score | 1.00 | |||||||||||
| 1/NPL | −0.25 | 1.00 | ||||||||||
| LIMS | 0.37 | 0.31 | 1.00 | |||||||||
| LIMG | 0.04 | −0.02 | 0.10 | 1.00 | ||||||||
| HHI | 0.15 | −0.19 | 0.29 | 0.06 | 1.00 | |||||||
| BCON | 0.05 | −0.12 | 0.16 | 0.10 | 0.10 | 1.00 | ||||||
| GDP | 0.12 | −0.27 | 0.32 | 0.07 | −0.11 | −0.09 | 1.00 | |||||
| PPG | −0.03 | −0.07 | −0.21 | −0.03 | 0.11 | 0.11 | −0.66 | 1.00 | ||||
| CISH | 0.17 | −0.21 | 0.23 | −0.10 | 0.05 | −0.39 | 0.39 | −0.33 | 1.00 | |||
| LER | −0.07 | 0.12 | 0.05 | −0.09 | −0.01 | −0.23 | 0.01 | −0.17 | 0.21 | 1.00 | ||
| WGI | −0.03 | −0.31 | 0.18 | 0.05 | −0.07 | −0.07 | 0.62 | −0.49 | 0.35 | 0.20 | 1.00 | |
| NII | −0.12 | 0.13 | −0.24 | −0.09 | −0.10 | 0.05 | −0.15 | 0.15 | −0.24 | −0.09 | −0.27 | 1.00 |
| VIF | – | – | 1.41 | 1.05 | 1.18 | 1.31 | 2.60 | 1.88 | 1.56 | 1.20 | 1.85 | 1.18 |
Note: This table reports the VIF value and correlation matrix of variables. The numbers in bold indicate statistically significant at 5 % or better. See Appendix A for variable definitions.