Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Financial Innovation

Table 6 ARDL bounds test analysis

Test statistics	Value	K	\({H}_{0}\)	\({H}_{1}\)
F-statistics	13.337	8	No level relationship	Relationship exists
t-statistics	− 10.121
Kripfganz &Schneider (2018) critical values and approximate p-values y

Significance (%)	F-statistics		t-statistics		p-value F
Significance (%)	1(0)	1(1)	1(0)	1(1)	1(0)	1(1)
10	2.12	3.23	− 2.57	− 4.04	0.000***	0.000***
5	2.45	3.61	− 2.86	− 4.38	p-value t
1	3.15	4.43	− 3.43	− 4.99	0.000***	0.002**

*, ** and *** respectively represent statistical significance at 10%, 5% and 1% levels. The respective significance levels suggest the rejection of the null hypothesis of no cointegration. The optimal lag length on each variable is chosen by the Schwarz’s Bayesian information criterion (SBIC)