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Table 6 Unit-root tests: capital accumulation equations.

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

  Augmented Dickey–Fuller Phillips–Perron
Level First difference Level First difference
(A) Manufacturing
Accumulation rate − 2.58 − 5.46*** − 2.63a − 5.49***
Production growth rate − 4.83*** − 8.19*** − 4.83*** − 15.07***
(B) Tradables
Accumulation rate − 2.73* − 5.42*** − 2.80* − 5.44***
Production growth rate − 4.90*** − 8.25*** − 4.90*** − 14.48***
(C) Non-tradables
Accumulation rate − 4.50*** − 4.37*** − 3.76*** − 10.01***
Production growth rate − 5.79*** − 8.47*** − 8.92*** − 24.73***
(D) Real exchange rate
Real exchange rate, RER − 2.88* − 4.68*** − 2.67* − 5.69***
Depreciation component, RERD − 1.15 − 4.83*** − 1.13 − 4.90***
Appreciation component, RERA − 2.92* − 3.86*** − 5.80*** − 3.95***
  1. Period 1992–2015, 24 annual observations
  2. ADF test: lag length determined by Akaike criterion, maximum 2. Test includes an intercept
  3. PP test: Bartlett kernel. Newey–West bandwidth. Test includes an intercept
  4. Or longest available after inclusion of lags and first differences
  5. aCritical value at 10% is − 2.64
  6. The unit-root hypothesis is rejected at ***1%, **5%, *10%