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Table 5 Long run Causality

From: Causality between bank’s major activities and economic growth: evidences from Pakistan

Causality

ECMt-1

T-statistics

P-value

Long run causality from bank’s credit to GDPb

−0.1416

−1.4627

0.1507

Long run causality from GDP to bank’s credita

−0.3045

−4.3841

0.0001

  1. aLM Test = 0.5496 (Prob of chi-square), Heteroskedasticity test = 0.23 (prob of chi square), Jarque-Bera stat = 1.42 (0.49 prob)
  2. bLM Test = 0.2067 (Prob of chi-square), Heteroskedasticity test = 0.3354 (prob of chi square), Jarque-Bera stat = 2.04 (0.35 prob)