Table 2.

Correlation matrix of economic volatility model variables

	GDP volatility	HPR volatility	CRD	CRD squared	GOV	TOPEN	INV volatility	INF volatility
GDP volatility	1
HPR volatility	0.208*	1
CRD	-0.014	-0.291*	1
CRD squared	-0.007	-0.284*	0.998*	1
GOV	0.000	0.132*	-0.149*	-0.152*	1
TOPEN	0.047*	-0.056*	0.512*	0.531*	0.097*	1
INV vol.	0.395*	0.056*	0.210*	0.221*	-0.029	0.283*	1
INF vol.	0.222*	0.252*	-0.110*	-0.103*	-0.097*	-0.145*	0.060*	1

* Null of ‘no correlation’ is rejected at the 5% level of significance, respectively