The dynamic linkage between renewable energy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade

Latin American Economic Review

Table 6 Panel residual cointegration test results (across income groups)

	Statistic	Prob.	Weighted
	Statistic	Prob.	Statistic	Prob.
Lower-Middle-Income countries
Alternative hypothesis: common AR coefs. (within-dimension)
Panel v-stat	− 5.291	0.00***	− 6.715	0.00***
Panel rho-stat	− 6.392	0.00***	− 7.426	0.00***
Panel PP-stat	− 7.350	0.00***	− 7.148	0.00***
Panel ADF-stat	− 6.142	0.00***	− 6.168	0.00***
Alternative hypothesis: individual AR coefs. (between-dimension)
Group rho-stat	− 6.945	0.00***
Group PP-stat	− 12.547	0.00***
Group ADF-stat	− 7.916	0.00***
Upper-Middle-Income countries
Alternative hypothesis: common AR coefs. (within-dimension)
Panel v-stat	− 6.327	0.00***	− 7.709	0.00***
Panel rho-stat	− 6.918	0.00***	− 8.894	0.00***
Panel PP-stat	− 11.316	0.00***	− 8.645	0.00***
Panel ADF-stat	− 7.264	0.00***	− 7.632	0.00***
Alternative hypothesis: individual AR coefs. (between-dimension)
Group rho-stat	− 7.942	0.00***
Group PP-stat	− 13.906	0.00***
Group ADF-stat	− 8.319	0.00***
High-Income countries
Alternative hypothesis: common AR coefs. (within-dimension)
Panel v-stat	− 8.236	0.00***	− 8.732	0.00***
Panel rho-stat	− 9.147	0.00***	− 8.046	0.00***
Panel PP-stat	− 13.341	0.00***	− 7.749	0.00***
Panel ADF-stat	− 8.429	0.00***	− 7.657	0.00***
Alternative hypothesis: individual AR coefs. (between-dimension)
Group rho-stat	− 9.836	0.000***
Group PP-stat	− 15.554	0.000***
Group ADF-stat	− 9.937	0.000***

Null hypothesis: no cointegration. “***” indicates statistical significance at the 1 % level. We consider the case intercept and deterministic trends. Lag length selection is based on SIC with a max lag of 2. Newey–West automatic bandwidth selection and Bartlett Kernel