Table 2.

Unit root test and cross-sectional loadings

Constructs	Y	RE	NRE	K	L
Pesaran CD	2.256*	2.936*	9.141*	6.733*	5.664*
Significance	0.000	0.000	0.000	0.000	0.000
Testing unit root test
CIPS test (at level)	3.829	2.159	6.314	2.067	2.626
CIPS test (at 1st diff)	0.291	4.861	1.143	0.829	6.652

*Shows that the alternative hypothesis of CD test is accepted and unit root is significant at 5% level of significance