Skip to main content

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

Table 10 Effect of an unadjusted undervaluation measure on service sector.

From: Real exchange rate undervaluation, regional integration and services sector performance: evidence from the East African Community

 

(1)

PMG-ARDL

(2)

CS-ARDL

Speed of adjustment

 ECT

− 0.385***

(0.127)

− 0.732*

(0.415)

Longrun

 ln Capital

0.602***

(0.112)

0.693***

(0.202)

 ln Labor

− 0.244***

(0.075)

− 0.032**

(0.281)

 Growth

0.001

(0.003)

− 0.003

(0.012)

 Inflation

− 0.006***

(0.002)

− 0.004**

(0.000)

 ln Undervaluation

0.297***

(0.072)

0.430**

(0.197)

Shortrun

 ln Capital

− 0.068

(0.046)

− 0.472

(0.138)

 ln Labor

0.107

(0.170)

0.123

(0.240)

 Growth

− 0.002

(0.002)

− 0.002

(0.001)

 Inflation

0.001**

(0.001)

0.002*

(0.001)

 ln Undervaluation

− 0.070

(0.052)

0.279

(0.295)

Constant

0.929***

(0.316)

0.392**

(0.607)

Observations

104

104

Diagnostic tests

 Hausman test (χ2, p-value)

3.63

[0.3046]

− 

− 

 Wooldridge Autocorrelation test [p-value]

25.37 [0.151]

   

 Normality test [p-value]

3.57 [0.1679]

   

 Heteroscedasticity test [p-value]

14.17 [0.090]

   
  1. The Hausman test was carried out to choose between Mean Group ARDL and PMG-ARDL, and the latter was preferred. Standard errors in parentheses
  2. ***p < 0.01
  3. **p < 0.05
  4. *p < 0.1; ARDL (1 0 0 0 0)