Table 7 Unit root tests

Pesaran [68] unit root test (Models 1A–1C)

Variables

CIPS (intercepts only)

Critical values (CV)

Levels

1st difference

Calculated Statistic

Prob

Calculated Statistic

Prob

10%

5%

1%

LNLEXP

-3.839***

< 1% (CV)

-2.854***

< 1% (CV)

-2.03

-2.11

-2.25

LNINFMOR

-1.884

> 10%

-2.548***

< 1% (CV)

PRUDN

-1.528

> 10%

-2.280***

< 1% (CV)

AVRDES

-2.110**

5%

-2.518***

< 1% (CV)

GDPPC

-0.978

> 10%

-2.800***

< 1% (CV)

GOVEXP

-1.550

> 10%

-3.925***

< 1% (CV)

MNSCHOOL

-2.036*

10%

-4.070***

< 1% (CV)

URBAN

-1.997

> 10%

-2.976***

< 1% (CV)

Model 1D

Level

1^st difference

LNINFMOR

Types

Statistic

Prob

Statistic

Prob

Order of integration

LLC

-5.7459***

0.0000

-

-

I(0)

IPS

-2.5397***

0.0055

-

-

ADF

463.0545***

0.0000

-

-

AVRDES

LLC

-2.5844***

0.0049

-

-

I(0)

IPS

4.1243

1.0000

-5.7624***

0.0000

I(1)

ADF

63.9411

0.4082

121.1623***

0.0000

I(1)

GDPPC

LLC

2.4703

0.9932

-13.1832***

0.0000

IPS

-1.7074**

0.0439

-12.3152***

0.0000

I(1)

ADF

59.1962

0.5775

301.7121***

0.0000

GOVEXP

LLC

-1.2336

0.1087

-20.1958***

0.0000

IPS

0.0924

0.5368

-10.9719***

0.0000

I(1)

ADF

62.6224

0.4540

545.9615***

0.0000

MNSCHOOL

LLC

-3.5101***

0.0002

-

-

I(0)

IPS

-0.6925

0.2443

-11.0645***

0.0000

I(1)

ADF

48.8314

0.8883

607.8821***

0.0000

I(1)

URBAN

LLC

4.8714

1.0000

-19.7382***

0.0000

IPS

5.2350

1.0000

-10.5568***

0.0000

I(1)

ADF

74.0224

0.1410

378.0689***

0.0000