Table 4.
Cross-sectional dependence test.
| Breusch–Pagan LM | Pesaran scaled LM | Pesaran CD | |
|---|---|---|---|
| GCC countries | |||
| Model 1 | 43.0243 (0.0002) |
5.1165 (0.0000) |
2.07335 (0.0381) |
| Model 2 | 50.5148 (0.0000) |
6.4840 (0.0000) |
0.9837 (0.3252) |
| Model 3 | 90.6647 (0.0000) |
13.8144 (0.0000) |
8.6275 (0.0000) |
| Model 4 | 34.7184 (0.0027) |
3.6000 (0.0003) |
1.0889 (0.2762) |
| Advanced countries | |||
| Model 1 | 175.7841 (0.0000) |
29.3550 (0.0000) |
12.7038 (0.0000) |
| Model 2 | 47.9313 (0.0000) |
6.0124 (0.0000) |
3.4984 (0.0000) |
| Model 3 | 187.0221 (0.0000) |
31.406 (0.0000) |
13.2199 (0.0000) |
| Model 4 | 182.4419 (0.0000) |
30.5705 (0.0000) |
12.9138 (0.0000) |
Probabilities are reported in brackets.