| 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 |
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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 |
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| −0.620* | 0.070 | −8.84 |
Diagnostic tests |
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IPS | −10.395* [0.000] | −12.973* [0.000] | ||||
CADF | −3.163* [0.001] | −2.651* [0.004] |