Skip to main content

Table 3 Unit Root Test

From: Financial innovation and economic growth in Bangladesh

Variables

Augmented Dickey-Fuller test statistic

Phillips-Perron test statistic

Integration (I)

At level

1st diff

At level

1st diff

ln (M2/M1

−1.78 (0.11)

−4.78 (0.01)

−0.10 (0.22)**

−2.10 (0.02)**

I (1)

lnDCB

−0.63 (0.84)

−4.51 (0.00)**

−0.59 (0.85)

−4.57 (0.00)**

I (1)

lnTO

−1.36 (0.58)

−4.68 (0.00)**

−1.32 (0.60)

−4.88 (0.00)*

I (1)

lnGDPPC

−1.99 (0.28)

−5.95 (0.00)*

−1.95 (0.30)

−6.29 (0.00)*

I (1)

lnGEXP

−3.33 (0.24)

−3.85 (0.00)*

−3.38 (0.21)

−5.14 (0.00)*

I (1)

lnGCF

−2.36 (0.16)

−3.14 (0.03)**

−2.19 (0.21)

−3.04 (0.04)**

I (1)

lnCPI

−3.51 (0.01)**

  

−3.49 (0.01)**

I (0)

  1. Note: 1. CPI: Consumer Price Index, M2/M1: Broad-to-Narrow Money, GEXP: Government Expenditure, GCF: Gross Capital Formation, DCB: Domestic Credit to Private Sector, TO: Trade Openness and GDPPC: Gross Domestic Product Per Capita. Variables are positively defined (see Table 1)
  2. Note 2: Values reported () in brackets are the associated probability of coefficients
  3. Note 3: (*) & (**) significance at 5% and 1%, respectively
  4. Note 4: Values reported here are the natural logs of the variables. We use natural log forms in our estimation