Table 9.
Gradual shift causality test
| Causality path | Wald stat | No of Fourier | P-value | Decision |
|---|---|---|---|---|
| GDP ➔ EC | 10.940 | 3 | 0.1412 | Do not reject Ho |
| EC ➔ GDP | 18.828* | 3 | 0.0087 | Reject Ho |
| GDP ➔ URB | 21.986* | 1 | 0.0025 | Reject Ho |
| URB ➔ GDP | 5.868 | 1 | 0.5551 | Do not reject Ho |
| GDP ➔ CO2 | 10.721 | 2 | 0.1512 | Do not reject Ho |
| CO2 ➔ GDP | 23.974* | 2 | 0.0011 | Reject Ho |
| GDP ➔ GCF | 10.721 | 2 | 0.1512 | Do not reject Ho |
| GCF ➔ GDP | 5.1177 | 2 | 0.6455 | Do not reject Ho |
Note: 1%, 5%, and 10% level of significance is illustrated by *, **, and *** respectively