Table 5.

Shows the results of a cross-section dependency test for each income category.

Values	1st 10 economies group		2nd 10 economies group		3rd 10 economies group
	TEST cd	P-value	TEST cd	P-value	TEST cd	P.value
inrec	24.675	4	12.398	0	19.354	0
lnCOP	86.255	0	154.726	0	64.343	0
lnGDPPC	72.708	0	125.907	0	20.972	0
lnCO2	11.643	0	34.642	0	8.339	0
FDI	12.576	0	17.411	0	11.788	0
Trade	36.716	0	29.77	0	11.679	0
lnIVA	28.207	0	11.135	0	0.403	0.687
Institution	−0.076	0.939	10.44	0	3.158	0.002
Urbanization	35.838	0	84.78	0	56.233	0
Return on asset	34.654	1	7.142	0	−0.782	0.434
Market capitisation	3.564	6	0.669	0.504	−1.076	0.282
Asset quality	12.92	0	17.055	0	3.468	0.001
Managerial inefficiency	4.096	0	16.774	0	−0.142	0.887
Z-score	3.927	0	0.927	0.354	−1.228	0.22

Source: Author calculations