Table 3.

Panel cointegration tests.

Panel A: Kao panel cointegration test	Hypothesis	ADF		P-value
ln(LE), ln(GDP)	H0: No Cointegration	−1.641		0.05
ln(GDP), ln(LE)+, ln(LE)−	H0: No Cointegration	−0.348		0.36
ln(LE), ln(GDP)+, ln(GDP)−	H0: No Cointegration	−2.538		0.00**
Panel B: Johansen Fisher panel cointegration tests	No. of cointegration equations	Trace test Fisher-stat	P-value	Max-Eigen value test Fisher-stat	P-value
ln(LE), ln(GDP)+, ln(GDP)−	H0: No Cointegration	46.946	0.00**	36.376	0.00**
	H0: At most 1	10.571	0.43	10.527	0.35

^**signifies 1% significance level.