
(1.1)

(1.2)

(1.3)


Manufacturing

Tradables

Nontradables


Estimated coefficients

Real exchange rate, RER

0.274 (0.00)

0.256 (0.00)

− 0.070 (0.04)

Production growth rate

0.511 (0.06)

0.839 (0.00)

0.762 (0.00)

Errorcorrection coefficient, ρ

− 0.286 (0.00)

− 0.219 (0.00)

− 0.851 (0.00)

Diagnostics

Jarque–Bera^{a}

0.156

0.416

0.891

Breusch‒Godfrey, n = 2^{b}

0.729

0.260

0.189

ARCH^{c}

0.581

0.632

0.687

Ramsey’s RESET^{d}

0.524

0.677

0.533

Adjusted Rsquared

0.933

0.955

0.891

Bounds tests

t statistic

− 3.83**

− 3.60**

− 5.13***

F statistic

30.79***

50.62***

18.15***

 Dependent variable: capital accumulation rate
 Longrun coefficients from EC ARDL models, 1992‒2015, 24 annual observations
 For illustrative purposes, the p values for the d_{i} coefficients from Eq. (2a) in the text are shown in parenthesis, next to the estimated coefficients
 All the equations include an intercept and crisis dummies for 1995 and 2009 (not shown). Columns (1.1) and (1.2) include an additional dummy for 2013 (2012 in column 1.3); column (1.2) includes an additional dummy for 1994
 All the variables are expressed in %, except RER, which is in natural logs times 100
 Diagnostics: p values for the null hypotheses of ^{a} normally distributed errors, ^{b} no serial correlation of up to order n, ^{c} no ARCH errors, and ^{d} no specification error
 Bounds tests: reject the null of no longrun relationship at ***1%, **5%, *10%
 The tests use the critical values from Pesaran et al. (2001). In the capital accumulation equations, the F test relies on the smallsample critical values calculaed by Narayan (2005)