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Table 3 Results of the model specification test for panel data

From: Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies

Specification test

Tested

Islamic countries

Non-Islamic countries

Selection

Saving

Investment

Saving

Investment

F-test

OLS/

242.06

22.09

73.90

19.30

Fixed

fixed

(0.000)

(0.000)

(0.000)

(0.000)

Breusch–

OLS/

528.29

247.34

414.98

239.75

Random

Pagan

random

(0.000)

(0.000)

(0.000)

(0.000)

(LM)

Hausman

Fixed/

4.863

9.248

6.885

9.949

Random

random

(0.676)

(0.235)

(0.441)

(0.191)

  1. Note: The definitions of the variables appear in the note under Table 1. The figures in parentheses are the p-values of the t-statistics. “LM” stands for Lagrange multiplier