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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 1 Test for Granger non-causality applying the Toda and Yamamoto modified Wald test

From: Structural changes, FDI, and economic growth: evidence from the Baltic states

Country

Ho:

MWALD

Country

Ho:

MWALD

Estonia

FDI does not Granger cause growth

18.35***

Lithuania

FDI does not Granger cause growth

13.02**

 

Growth does not Granger cause FDI

22.41***

 

Growth does not Granger cause FDI

4.07

 

FDI does not Granger cause TOTV

17.18**

 

FDI does not Granger cause TOTV

6.78*

 

TOTV does not Granger cause FDI

15.12**

 

TOTV does not Granger cause FDI

8.20*

Latvia

FDI does not Granger cause growth

14.33**

   
 

Growth does not Granger cause FDI

4.96

   
 

FDI does not Granger cause TOTV

5.55*

   
 

TOTV does not Granger cause FDI

7.29*

   
  1. The order of k was chosen to be 2 for Estonia and 3 for Latvia and Lithuania according to the Schwarz criteria. The order of d max was chosen to be one for all three countries, since it seems that each variable contains only one unit root at maximum
  2. Note that *, **, and *** indicate significance levels at 10, 5, and 1 %, respectively