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

Financial Innovation

Table 4 Long-run and short-run coefficients under ARDL

	Country
Panel A: long-run estimation
Dependent variable Y: Repressors	Bangladesh		India		Pakistan		Sri Lanka
Dependent variable Y: Repressors	Coefficient	t-stat	Coefficient	t-stat	Coefficient	t-stat	Coefficient	t-stat
lnFI	1.22^a	2.69	1.79^a	1.56	1.17^a	2.80	0.91^a	1.83
lnTO	0.43^b	3.31	0.16^a	0.68	0.33^a	3.76	0.07^b	0.98
lnGCF	0.16*	2.33	0.22^b	−1.01	0.41*	1.96	0.14^b	4.22
lnDCP	0.18^a	2.51	0.04^b	0.47	0.15^b	1.45	0.47^a	1.65
C	−3.09^a	−0.12	−2.6	−0.21	− 3.21	−0.19	7.47	9.85
Panel B: Short-run estimation
ECT_t − 1	−0.93^b	−8.43	− 0.97^a	−5.39	− 0.95^a	−4.64	− 0.75^a	−5.98
∆lnFI	0.22^a	2.99	0.26^b	0.83	0.11^b	4.04	0.16^a	1.59
∆lnTO	0.36^b	3.91	0.09	0.66	0.36^b	3.97	0.19^b	1.14
∆lnGCF	0.09^b	2.84	−0.16	−3.86	0.09^a	1.72	0.08^a	3.79
∆lnDCP	0.16^b	2.91	0.04^b	0.40	−0.16	−1.58	0.04^a	1.76
Panel C. Residual Diagnostic Test
R²	0.78		0.89		0.79		0.72
δ	0.13		0.28		0.15		0.45
\( {F}_{statistics}^2 \)	25.25^a		4.51^a		1.61^a		4.15^a
\( {x}_{Autocorrelation}^2 \)	0.47[0.49]		0.97[0.85]		1.15[0.52]		0.89[0.25]
\( {x}_{Heteroskedasticity}^2 \)	1.87[017]		1.15[0.37]		1.82[0.41]		2.14[0.47]
\( {x}_{Normality}^2 \)	7.28[0.19]		6.94[0.29]		1.61[0.51]		1.89[0.18]
\( {x}_{RESET}^2 \)	1.54[013]		1.26[0.29]		0.69[0.48]		0.81[0.38]