The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)
Table 5 Undervaluation and service sector performance.
(1) PMG-ARDL | (2) CS-ARDL | |||
|---|---|---|---|---|
Speed of adjustment | ||||
ECT | − 0.346*** | (0.131) | − 0.772** | (0.334) |
Longrun | ||||
ln Capital | 0.532*** | (0.116) | 0.601*** | (0.115) |
ln Labor | − 0.279*** | (0.083) | − 0.003** | (0.308) |
Growth | − 0.001 | (0.003) | − 0.010 | (0.016) |
Inflation | − 0.006*** | (0.002) | − 0.004*** | (0.001) |
ln Undervaluation | 0.627*** | (0.178) | 0.857*** | (0.464) |
Shortrun | ||||
ln Capital | − 0.052 | (0.040) | − 0.417*** | (0.131) |
ln Labor | 0.088 | (0.170) | 0.223 | (0.221) |
Growth | − 0.001 | (0.002) | − 0.003 | (0.002) |
Inflation | 0.001** | (0.001) | 0.002** | (0.001) |
ln Undervaluation | − 0.130 | (0.152) | − 0.139 | (0.760) |
Constant | 0.872*** | (0.338) | 0.214 | (1.169) |
Observations | 104 | 104 | ||
Diagnostic tests | ||||
Hausman test (χ2) | 5.888 | [0.318] | – | – |
Wooldridge autocorrelation test | 18.566 [0.230] | |||
Normality test | 3.16 [0.2060] | |||
Heteroskedasticity | 20.62 [0.4000] | |||