Long Run Coefficient

Short Run Coefficient

Coef.

Std. Err.

z-stat.

Coef.

Std. Err.

z-stat.

Model 1: Dependent variable is the log of domestic credit to private sector (% GDP)

REM

−0.110*

0.044

−2.52

−0.065**

0.033

−1.94

GDP

0.200

0.285

0.70

−0.049

0.304

−0.16

INF

−0.004*

0.000

−7.38

−0.002*

0.000

−3.45

FDI

−0.017*

0.004

−4.37

−0.005

0.004

−1.33

ECM

-

-

-

−0.672*

0.062

−10.70

Diagnostic tests

IPS

−10.231* [0.000]

−12.759* [0.000]

CADF

−2.215* [0.013]

−3.304* [0.000]

Model 2: Dependent variable is the log of M2/GDP

REM

0.037**

0.023

1.65

−0.008

0.018

−0.40

GDP

0.335

0.216

1.55

0.214

0.237

0.90

INF

−0.002*

0.001

−1.96

−0.002*

0.000

−2.28

FDI

−0.007

0.009

−0.82

−0.009

0.006

−1.58

ECM

−0.620*

0.070

−8.84

Diagnostic tests

IPS

−10.395* [0.000]

−12.973* [0.000]

CADF

−3.163* [0.001]

−2.651* [0.004]