Variables

ADF Test Statistic (No Constant)

PP Test Statistics (No Constant)

Optimal Lag Length (Based on SBIC)

Level

First Difference

Level

First Difference

Real GDP Growth

−2.513**

−8.095***

3.194***

−9.746***

1

Real GDP Per Capita Growth

−3.403***

−7.889***

−4.224***

−8.727***

1

Foreign Direct Investment

1.852

−2.144**

1.265

−6.571***

1

Government Spending (%GDP)

−0.141

−5.615***

−0.070

−6.148***

1

Trade (% of GDP)

−0.097

−5.450***

−0.066

−5.612***

1

Population Growth Rate

−1.288

−4.420 ***

−0.906

−3.075 ***

2

Bank Development 1

−0.830

−4.067***

−0.802

−4.912***

2

Bank Development 2

0.000

−6.403***

--

−13.837***

2

Financial Reforms

−1.257

−5.437***

−1.314

−7.478***

1

Bank Development 1*FDI

1.848

−2.039**

0.326

−7.471***

2

Bank Development 2*FDI

1.852

−2.144**

1.265

−6.571***

2