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Table 1 Capital accumulation equations, I.

From: Asymmetric real-exchange-rate effects on capital accumulation: evidence from non-linear ARDL models for Mexico

  (1.1) (1.2) (1.3)
Manufacturing Tradables Non-tradables
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)
Error-correction coefficient, ρ − 0.286 (0.00) − 0.219 (0.00) − 0.851 (0.00)
Diagnostics
Jarque–Beraa 0.156 0.416 0.891
Breusch‒Godfrey, n = 2b 0.729 0.260 0.189
ARCHc 0.581 0.632 0.687
Ramsey’s RESETd 0.524 0.677 0.533
Adjusted R-squared 0.933 0.955 0.891
Bounds tests
t statistic − 3.83** − 3.60** − 5.13***
F statistic 30.79*** 50.62*** 18.15***
  1. Dependent variable: capital accumulation rate
  2. Long-run coefficients from EC ARDL models, 1992‒2015, 24 annual observations
  3. For illustrative purposes, the p values for the di coefficients from Eq. (2a) in the text are shown in parenthesis, next to the estimated coefficients
  4. 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
  5. All the variables are expressed in %, except RER, which is in natural logs times 100
  6. 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
  7. Bounds tests: reject the null of no long-run relationship at ***1%, **5%, *10%
  8. The tests use the critical values from Pesaran et al. (2001). In the capital accumulation equations, the F test relies on the small-sample critical values calculaed by Narayan (2005)