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Table 7 Unit-root tests: investment 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
Annual inflation rate − 5.83*** − 5.13*** − 6.62*** − 5.05***
Broad money supply, M3/GDP − 0.07 − 5.02*** 0.90 − 14.62***
Government investment, series A − 1.86 − 5.17*** − 4.47*** − 20.85***
Government investment, series B − 1.29 − 6.20*** − 6.95*** − 30.30***
Gross domestic product, GDP, series A − 0.48 − 5.04*** − 0.37 − 24.86***
GDP, series B − 0.40 − 5.45*** − 0.45 − 30.55***
Industrial production index − 1.96 − 6.71*** − 1.83 − 5.38***
Manufacturing exports − 2.01 − 4.31*** − 2.55 − 15.11***
Nominal interest rate − 5.46*** − 10.75*** − 5.79*** − 11.38***
Private investment, PI, series A − 1.55 − 5.23*** − 1.78 − 13.07***
Private investment, PI, series B − 1.54 − 4.38*** − 1.93 − 13.22***
Real exchange rate, RER − 3.45** − 4.54*** − 3.17** − 9.86***
Depreciation component, RERD − 0.29 − 4.69*** − 0.18 − 9.89***
Appreciation component, RERA − 2.96** − 4.59*** − 3.05** − 8.65***
  1. 1988Q1‒2016Q3, 115 quarterly observations
  2. ADF test: lag length determined by Akaike criterion, maximum 4. Test includes an intercept
  3. PP test: Bartlett kernel. Newey–West bandwidth. Test includes an intercept
  4. The unit-root hypothesis is rejected at ***1%, **5%, *10%