Table 4.

Pesaran CD test results.

Model A ($\mathit{SO}{2}_{\mathit{it}}$)		Model B $\left(\mathit{EP}{\mathit{I}}_{\mathit{jt}}\right)$
CD statistic	P value	CD statistic	P value
88.058 ∗∗∗	0.0000	−1.006	0.314

Note: $H_0$ errors are weakly cross-sectional dependent, $CD\sim N\left(\mathrm{0,1}\right)$ and ∗∗∗ indicates significance at the 1% level.