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 |