The relationship between financial development and income inequality in Turkey

Journal of Economic Structures

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

Table 3 Results of the ARDL cointegration and diagnostic tests

Estimated model	INE = f(Y,INF,G,FD)	INE = f(Y,INF,G,BAD)	INE = f(Y,INF,G,SMD)	INE = f(Y,INF,G,BND)
Lag order	(2,1,2,2,1)	(2,0,2,1,2)	(1,2,2,1,2)	(1,0,2,0,0)
F-statistics	6.568**	7.706***	8.741***	7.475**
Structural breaks	2001	2001	2001	2001
Critical values	1%	5%	10%
Lower bound	5.856	4.154	3.430
Upper bound	7.578	5.540	4.624
Diagnostic tests
\(\chi^{2} NORMAL\)	0.463 [0.793]	0.590 [0.744]	0.913 [0.633]	0.438 [0.803]
\(\chi^{2} SERIAL\)	1.476 [0.263]	1.541 [0.244]	2.959 [0.155]	1.587 [0.236]
\(\chi^{2} ARCH\)	1.777 [0.196]	0.036 [0.851]	0.259 [0.615]	0.298 [0.590]
\(\chi^{2} WHITE\)	0.836 [0.636]	1.665 [0.149]	1.113 [0.448]	1.707 [0.173]
\(\chi^{2} RAMSEY\)	0.842 [0.389]	0.918 [0.371]	1.536 [0.162]	0.041 [0.967]
CUSUM	Stable	Stable	Stable	Stable
CUSUMQ	Stable	Stable	Stable	Stable

** and *** indicates statistical significance at 5 and 1% level, respectively. The numbers in brackets are p values. The critical values are obtained from Narayan (2005)