Test statistics

Model 1

FD = Domestic credit to private sector

Model 2

FD = M2/GDP

Statistics

p-value

Statistics

p-value

Cross-sectional dependency tests

LM (Breusch and Pagan, 1980)

530.354*

0.000

320.106*

0.000

LM adjusted (Pesaran 2004)

51.160*

0.000

28.998*

0.000

CD (Pesaran, 2004)

9.688*

0.000

4.497*

0.000

Homogeneity tests

Delta tilde

42.282*

0.000

49.322*

0.000

Delta tilde adjusted

50.313*

0.000

52.632*

0.000