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Table 5 Cross-sectional dependence and homogeneity tests

From: Capital mobility in Latin American and Caribbean countries: new evidence from dynamic common correlated effects panel data modeling

1. Bias-adjusted LM test results for error cross-section dependencea
Test Statistic (No Trend) With Trend
 LM 1101.0c 894.6c
 LMadj 201.2c 150.0c
 LM CD 15.01c −13.33c
2. The Pesaran and Yamagata (2008) slope homogeneity testsb
Test Statistic P-value
 Δ Test 12.388c 0.000
 Δ Adj. Test 12.715c 0.000
  1. a Null-hypothesis is Cov (μitjt) = 0 for all i and i = j
  2. b Null-hypothesis is the Homogeneous Slope. Trend is not included
  3. c denotes statistical significance at the 1% level