Table 4.
Panel unit root tests in presence of cross-section dependence.
| Variable | Specification |
|
|---|---|---|
| Constant | Constant and trend | |
| Pesaran's CADF test | ||
| LPI | −4.016*** (0.000) | −1.651** (0.049) |
| LGDP | 0.710 (0.761) | −2.749*** (0.003) |
| LCEM | 1.194 (0.884) | 1.049 (0.853) |
| HDI | −8.832*** (0.000) | 0.590 (0.722) |
| LGFCF | −6.880*** (0.000) | −0.048 (0.481) |
| LLF | 2.510 (0.994) | 2.849 (0.998) |
| LP | 2.836 (0.998) | −3.403*** (0.000) |
| LUP | −5.196*** (0.000) | −1.772** (0.038) |
| LTO | 3.801 (1.000) | 0.714 (0.763) |
| Pesaran (2007)test | ||
| LPI | −1.925 | −2.098 |
| LGDP | −1.329 | −1.696 |
| LCEM | −1.911 | −2.035 |
| HDI | −2.264** | −1.569 |
| LGFCF | −1.560 | −2.132 |
| LLF | −1.947 | −1.838 |
| LP | −2.208** | −2.522 |
| LUP | −1.434 | 0.097 |
| LTO | −1.298 | −2.079 |
Notes: for Pesaran (2003) test, Z-t-bar or t-bar statistics are reported; P-Values in parentheses. For Pesaran (2007) test, deterministic chosen: constant: Critical Values: -2.07 (10%), −2.17 (5%), −2.34 (1%); deterministic chosen: constant and trend: Critical Values: -2.59 (10%), −2.69 (5%), −2.88 (1%).
***p < 0.01, **p < 0.05, *p < 0.10.