Financial Innovation

Table 2 Unit root test estimation

From: Nexus between financial innovation and economic growth in South Asia: evidence from ARDL and nonlinear ARDL approaches

	ADF			P-P			KPSS
	At level	∆	I	At level	∆	I	At level	∆	I
Bangladesh
lnY	−3.90^b	–	I(0)	–	−2.77^a	I(0)	0.06	0.38^a	I(1)
lnFI	−1.26	−5.95^a	I(1)	−1.11	−7.52^a	I(1)	0.19^b	–	I(0)
lnDCP	− 1.03	−5.15^a	I(1)	−0.89	−6.29^a	I(1)	0.22^a	–	I(0)
lnTO	−2.25	− 5.74^a	I(1)	−1.17	− 7.09^a	I(1)	0.17^b	–	I(0)
lnGCF	−1.25	−4.96^b	I(1)	−2.44	−3.86^b	I(1)	0.11	0.21^b	I(1)
India
lnY	−4.96^b	–	I(0)	−4.93^a	–	I(0)	0.07	0.29^a	I(1)
lnFI	− 3.17	−4.82^a	I(1)	− 2.50	−4.74^a	I(1)	0.08	0.39^a	I(1)
lnDCP	−3.69^b	–	I(0)	−3.69^b	–	I(0)	0.11	0.15^b	I(1)
lnTO	−3.19	− 3.66^b	I(1)	− 3.41	−6.37^a	I(1)	0.12	0.17^b	I(1)
lnGCF	−2.39	−3.98^b	I(1)	−1.98^c	−6.60^a	I(1)	0.09	0.19^b	I(1)
Pakistan
lnY	−4.75^b		I(0)	−4.71^b		I(0)	0.11	0.39^a	I(1)
lnFI	−1.63	−5.6^a	I(1)	−1.57	−5.85^a	I(1)	0.08	0.55^a	I(1)
lnDCP	−5.94		I(0)	−6.01^a		I(0)	0.18	0.28^a	I(1)
lnTO	−2.66	−7.1^a	I(1)	−2.68	−7.46^a	I(1)	0.10	0.47^a	I(1)
lnGCF	−1.14	−5.71^b	I(1)	−1.51	−5.72^a	I(1)	0.09	0.42^a	I(1)
SriLanka
lnY	−4.68^a		I(0)	−4.66^a		I(0)	0.28^a		I(0)
lnFI	−1.17	−7.91^a	I(1)	−1.05	−7.76^a	I(1)	0.12	0.37^b	I(1)
lnDCP	−9.52^a		I(0)	−8.94^a		I(0)	0.47^a		I(0)
lnTO	−1.018	−5.26^a	I(1)	−1.28	−5.26^a	I(1)	0.11	0.59^a	I(1)
lnGCF	−1.68	−5.98^b	I(1)	−1.33	−6.16^a	I(1)	0.14	0.48^b	I(1)

Note 1. Y for economic growth, FI for financial innovation, DCP for Domestic Credit to Private Sector, TO of Trade Openness, and GCF for Gross Capital Formation
Note 2. All the variables converted into the natural log for estimation
Note 3. ADF for Augmented Dickey-Fuller, P-P for Phillips-Perron, and KPSS for Kwiatkowski-Phillips-Schmidt-Shin
Note 4. ^a/^b/^c indicates significance level as 1, 5, and 10% respectively
Note 5. “I” for an order of integration, ∆ for first difference operator,

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