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Table 6 Granger-causality results

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

  Short-run Causality Long-run causality
∆lnY t − 1 ∆lnFI t − 1 ∆lnTO t − 1 ∆lnGCF t − 1 ∆lnDCP t − 1 ECT(−1) Inference
Bangladesh
∆lnYt − 1   5.856*** 4.047 7.742** 6.988** −1.28*** Long-run causality
∆lnFIt − 1 0.781**   2.482 1.441** 4.114 −0.15*** Long-run causality
∆lnTOt − 1 0.081** 0.075   1.03 0.315 −0.64** Long-run causality
∆lnGCFt − 1 3.465 7.858** 4.664*   5.047 0.406  
∆lnDCPt − 1 4.647 13.825*** 2.393 1.369   0.062  
India
∆lnYt − 1   9.213** 0.586** 2.083 2.672 −0.58** Long-run causality
∆lnFIt − 1 0.076**   2.542 0.571 2.47** −0.44** Long-run causality
∆lnTOt − 1 2.624 2.759   0.209** 2.094 0.92  
∆lnGCFt − 1 0.961** 0.152** 0.24   2.388 −0.88*** Long-run causality
∆lnDCPt − 1 1.194 3.188 7.55** 5.611   −0.95  
Pakistan
∆lnYt − 1   0.343** 1.553 6.018** 0.281 −0.13*** Long-run causality
∆lnFIt − 1 4.892**   0.351 2.141** 3.966 −0.84** Long-run causality
∆lnTOt − 1 4.813** 1.648   6.163 4.078 −0.044** Long-run causality
∆lnGCFt − 1 1.232 4.686** 1.966**   4.028 0.095  
∆lnDCPt − 1 1.253 4.522 11.838 9.383**   0.035  
Sri Lanka
∆lnYt − 1   3.473** 2.801 0.751** 2.022 −0.48** Long-run causality
∆lnFIt − 1 2.917**   4.362** 0.19 1.531 −0.36** Long-run causality
∆lnTOt − 1 0.282 6.766   4.992** 2.468 0.43  
∆lnGCFt − 1 5.286** 6.297** 5.843   2.886 −0.99** Long-run causality
∆lnDCPt − 1 4.419** 2.62 1.705** 2.016   0.67  
  1. Note 1: ***, **, and * indicates significant level at 1%, 5%, and10% respectively