Table 3.
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.