Financial Innovation

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
∆lnY_t − 1		5.856***	4.047	7.742**	6.988**	−1.28***	Long-run causality
∆lnFI_t − 1	0.781**		2.482	1.441**	4.114	−0.15***	Long-run causality
∆lnTO_t − 1	0.081**	0.075		1.03	0.315	−0.64**	Long-run causality
∆lnGCF_t − 1	3.465	7.858**	4.664*		5.047	0.406
∆lnDCP_t − 1	4.647	13.825***	2.393	1.369		0.062
India
∆lnY_t − 1		9.213**	0.586**	2.083	2.672	−0.58**	Long-run causality
∆lnFI_t − 1	0.076**		2.542	0.571	2.47**	−0.44**	Long-run causality
∆lnTO_t − 1	2.624	2.759		0.209**	2.094	0.92
∆lnGCF_t − 1	0.961**	0.152**	0.24		2.388	−0.88***	Long-run causality
∆lnDCP_t − 1	1.194	3.188	7.55**	5.611		−0.95
Pakistan
∆lnY_t − 1		0.343**	1.553	6.018**	0.281	−0.13***	Long-run causality
∆lnFI_t − 1	4.892**		0.351	2.141**	3.966	−0.84**	Long-run causality
∆lnTO_t − 1	4.813**	1.648		6.163	4.078	−0.044**	Long-run causality
∆lnGCF_t − 1	1.232	4.686**	1.966**		4.028	0.095
∆lnDCP_t − 1	1.253	4.522	11.838	9.383**		0.035
Sri Lanka
∆lnY_t − 1		3.473**	2.801	0.751**	2.022	−0.48**	Long-run causality
∆lnFI_t − 1	2.917**		4.362**	0.19	1.531	−0.36**	Long-run causality
∆lnTO_t − 1	0.282	6.766		4.992**	2.468	0.43
∆lnGCF_t − 1	5.286**	6.297**	5.843		2.886	−0.99**	Long-run causality
∆lnDCP_t − 1	4.419**	2.62	1.705**	2.016		0.67

Note 1: ***, **, and * indicates significant level at 1%, 5%, and10% respectively

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