Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Udeagha, Maxwell Chukwudi; Breitenbach, Marthinus Christoffel

doi:10.1186/s40854-022-00396-9

Financial Innovation

Table 4 Unit root analysis

From: Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Variable	Dickey-fuller GLS	Phillips–Perron	Augmented Dickey-fuller	Kwiatkowski–Phillips–Schmidt–Shin	Narayan and Pop (2010) unit root test
Variable	(DF-GLS)	(PP)	(ADF)	(KPSS)	Model 1		Model 2
Level	Test—statistics value				Break-year	ADF-stat	Break-year	ADF-stat
InCO₂	− 0.570	− 0.464	− 1.152	0.966	1982:1985	− 3.132	1987:1994	− 8.160***
InSE	− 0.116**	− 0.079	− 1.308	0.833***	1979:1988	− 2.914	1982:1990	− 7.601***
InTE	− 0.112*	− 0.076	− 1.268	0.848***	1979:1990	− 1.939	1982:1994	− 6.791***
InM3GDP	− 0.027**	− 0.041	− 1.172	0.715**	1981:1992	− 1.825	1986:1996	− 8.413***
InTDGDP	− 0.052***	− 0.162*	− 1.291	0.057**	1992:2001	− 2.504	2008:2011	− 7.619***
InDCPS	− 0.196*	− 0.176	− 0.052	0.527***	1994:1999	− 2.619	2009:2014	− 8.157***
InDCFS	− 0.017**	− 0.062	− 1.162	0.502***	1980:1987	− 1.825	2006:2016	− 7.624***
InFSDGDP	− 0.183*	− 0.170	− 1.148	0.340***	1987:2001	− 1.724	2005:2011	− 8.710***
InTECH	− 0.254***	− 0.284***	− 2.999	0.255***	1995:2000	− 4.318	2008:2011	− 7.821***
InEC	− 0.011	− 0.014	− 0.366	1.300***	1982:1989	− 4.372**	1985:1991	− 8.521***
InFDI	− 0.032*	− 0.001	− 0.012	0.640	2001:2006	− 2.021	2004:2010	− 8.362***
InOPEN	− 0.072	− 0.082	− 1.335	1.080*	1996:2001	− 3.053	2003:2009	− 7.318***
InIGDP	− 0.046	− 0.071*	− 1.718	1.060**	1972:1985	− 3.815	1982:1991	− 7.521***
First difference					Critical value (1%, 5%, and 10%)
\(\Delta \) InCO₂	− 0.995***	− 0.996***	− 7.176***	0.705***	1999:2005	− 4.801**	1980:1991	− 5.832***
\(\Delta \) InSE	− 0.695***	− 0.707***	− 5.319***	0.502***	1983:1997	− 5.831***	1985:1995	− 6.831***
\(\Delta \) InTE	− 0.694***	− 0.707***	− 5.316***	0.589***	1991:2000	− 8.531***	1987:1996	− 5.893***
\(\Delta \) InM3GDP	− 0.502***	− 0.264***	− 6.162***	0.410***	1982:1989	− 8.024***	2001:2014	− 7.920***
\(\Delta \) InTDGDP	− 0.710***	− 0.617***	− 5.719***	0.518***	1985:1989	− 5.814***	2002:2011	− 7.424***
\(\Delta \) InDCPS	− 0.417***	− 0.316***	− 7.392***	0.614***	1990:1998	− 6.417***	2005:2014	− .8.261***
\(\Delta \) InDCFS	− 0.813***	− 0.602***	− 5.815***	0.537***	1991:1999	− 5.892***	2000:2015	− 5.824***
\(\Delta \) InFSDGDP	− 0.714***	− 1.150***	− 7.251***	0.451***	1990:1996	− 7.517***	2001:2018	− 6.618***
\(\Delta \) InTECH	− 1.023***	− 1.034***	− 7.473***	0.424***	1999:2003	− 4.841**	2006:2010	− 5.983***
\(\Delta \) InEC	− 1.105***	− 1.121***	− 8.142***	0.586***	1985:1993	− 5.921***	1989:1997	− 7.942***
\(\Delta \) InFDI	− 0.207**	− 0.209**	− 6.443***	0.609***	2005:2008	− 6.831***	2001:2008	− 6.973***
\(\Delta \) InOPEN	− 0.935***	− 0.938***	− 6.699***	0.626***	1996:2004	− 6.842**	2001:2007	− 8.942***
\(\Delta \) InIGDP	− 0.799***	− 0.801***	− 5.878***	0.431***	1975:1990	− 7.742***	1988:1992	− 7.892***

Source: Authors’ calculations
^*, ** and ***Denote statistical significance at 10%, 5% and 1% levels, respectively. MacKinnon’s (1996) one-sided p values. Lag Length based on SIC and AIC. Probability-based on Kwiatkowski–Phillips–Schmidt–Shin (1992). The critical values for Narayan–Popp unit root test with two breaks are followed by Narayan and Pop (2010). All the variables are trended

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