Table 6 A parsimonious ECM of growth, bank credit and inflation in Mexico (Dependent variable: ΔGDP)
From: Growth, bank credit, and inflation in Mexico: evidence from an ARDL-bounds testing approach
Regressor | Model A |
|---|---|
Intercept | −0.020* (−3.810) |
Gross domestic product, ΔGDPt−1 | 0.009 (0.118) |
Government consumption, ΔGOV t | 0.278* (4.066) |
Gross investment, ΔINV t | −0.007 (−0.990) |
Exports, ΔXP t | 0.212* (6.256) |
Inflation, ΔINF t | −0.056* (−3.078) |
Private credit, ΔPC t | 0.211* (5.798) |
Inflation × private credit, ΔINF × PC t | −0.040* (−5.968) |
Liberalization dummy, ΔLIB t | 0.024* (1.515) |
ECMt−1 | −0.677* (−7.298) |
Adjusted R-squared | 0.848 |
Durbin’s h-statistic | −0.405 |
Standard error of regression | 0.014 |
Breusch–Godfrey, χ2(1) | 0.319 (0.572) |
Functional form | 0.461 (0.497) |
Test for heteroskedasticity, χ2(1) | 2.922 (0.087) |
Wald tests | |
H0 = coefficient on ΔGDPt−1 = 0 | 0.014 (0.906) |
H0 = coefficient on ΔGOV t = 0 | 16.536 (0.000) |
H0 = coefficient on ΔINV t = 0 | 0.98 (0.322) |
H0 = coefficient on ΔXP t = 0 | 39.14 (0.000) |
H0 = coefficient on ΔINF t = 0 | 9.48 (0.002) |
H0 = coefficient on ΔPC t = 0 | 33.62 (0.000) |
H0 = coefficient on ΔINF × PC t = 0 | 35.61 (0.000) |
H0 = coefficient on ΔLIB t = 0 | 2.29 (0.130) |
H0 = coefficient on ECMt−1 = 0 | 53.26 (0.000) |