FDI-growth and trade-growth relationships during crises: evidence from Bangladesh

Financial Innovation

Table 3 AARDL bound testing with F-test and t-test

	Spec. 1^†	Spec. 2	Spec. 3	Spec. 4	Spec. 5	Spec. 6	Spec. 7
	(0,3,3,3,3,2)	(0,2,2,3,3)	(3,2,0,3,2)	(2,0,0,2,1)	(0,2,0,2,2)	(1,3,1,2,2)	(1,2,0,1,1)
F-test	15.27***	7.56***	4.85***	7.92***	10.75***	9.46***	4.92***
t-test on lagged dependent variable	− 11.56***	− 7.29***	− 5.77***	− 8.29***	− 9.78***	− 8.99***	− 6.07***
F-test on lagged independent variables	8.65***	6.21***	7.08***	8.94***	7.64***	8.75***	9.38***
Diagnostic tests
Ad. R²	0.981	0.975	0.984	0.981	0.987	0.985	0.984
Durbin–Watson stat	2.737	1.948	2.079	2.142	2.425	2.273	2.381
B-G LM F-stat	1.991	0.221	1.831	0.136	1.115	0.390	0.453
B-G LM F-stat	[0.125]	[0.880]	[0.139]	[0.873]	[0.347]	[0.681]	[0.645]
Harvey F-stat	1.033	1.531	0.954	0.849	1.042	1.491	0.809
Harvey F-stat	[0.464]	[0.162]	[0.529]	[0.634]	[0.460]	[0.174]	[0.674]
Ramsey F-stat	0.467	2.203	2.22	1.844	0.409	0.506	2.383
Ramsey F-stat	[0.500]	[0.150]	[0.154]	[0.187]	[0.529]	[0.483]	[0.182]
J–B test	2.261	1.180	1.382	2.221	1.211	2.455	2.522
J–B test	[0.331]	[0.513]	[0.501]	[0.329]	[0.511]	[0.291]	[0.283]

***p < .01, **p < .05, *p < .1. p-values of significance are in square brackets. The number of observations in each estimated specification is 44 after adjustment
^†Spec means specification. Seven different specifications are estimated
Specification 1: lnGDP = f(lnExport, lnImport, lnLabor, lnCapital, lnM3, Crises)
Specification 2: lnGDP = f(lnTrade, lnLabor, lnCapital, lnM3, Crises)
Specification 3: lnGDP = f(lnFDI, lnLabor, lnCapital, lnM3, Crises)
Specification 4: lnGDP = f(lnTrade, lnLabor, lnCapital, lnM3, Crises, Crises*lnTrade)
Specification 5: lnGDP = f(lnExport, lnLabor, lnCapital, lnM3, Crises, Crises*lnExport)
Specification 6: lnGDP = f(lnImport, lnLabor, lnCapital, lnM3, Crises, Crises*lnImport)
Specification 7: lnGDP = f(lnFDI, lnLabor, lnCapital, lnM3, Crises, Crises*lnFDI)