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Financial Innovation

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 (μit,μjt) = 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
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