Table 6 Regional integration effect.

Speed of adjustment

 ECT

− 0.252*

(0.139)

− 0.250*

(0.144)

− 0.894**

(0.424)

− 0.433***

(0.156)

Long run

 ln Capital

1.242***

(0.240)

1.474***

(0.249)

0.078**

(0.789)

0.396**

(0.644)

 ln Labour

− 0.479***

(0.105)

− 0.501***

(0.112)

− 0.093**

(0.853)

− 0.079*

(0.045)

 Growth

− 0.003

(0.003)

− 0.003

(0.003)

0.002

(0.042)

− 0.004

(0.009)

 Inflation

− 0.005**

(0.002)

− 0.005**

(0.002)

− 0.006**

(0.007)

− 0.006*

(0.005)

 ln Undervaluation

0.756***

(0.213)

0.682***

(0.206)

0.909**

(0.227)

0.576*

(0.689)

 EAC

− 0.210***

(0.074)

− 0.885*

(0.460)

− 0.143**

(0.005)

− 0.775*

(0.778)

 UNDERV_EAC

0.769

(0.569)

0.656*

(0.672)

Short run

 ln Capital

− 0.176***

(0.039)

− 0.243***

(0.093)

− 0.250***

(0.069)

− 0.256**

(0.082)

 ln Labour

0.160

(0.419)

0.202

(0.348)

0.669

(0.903)

0.211

(0.255)

 Growth

0.000

(0.002)

− 0.000

(0.003)

0.000

(0.005)

0.001

(0.002)

 Inflation

0.001*

(0.001)

0.001

(0.001)

0.002*

(0.001)

0.001*

(0.002)

 ln Undervaluation

− 0.012

(0.199)

− 0.078

(0.526)

− 0.617*

(0.322)

− 0.087

(0.657)

 EAC

0.101**

(0.046)

0.489

(0.726)

0.033***

(0.060)

0.777**

(0.898)

 UNDERV_EAC

− 0.486

(0.880)

− 0.789

(0.331)

Constant

0.245*

(0.149)

0.103

(0.083)

0.907***

(0.233)

0.867***

(0.240)

Observations

104

104

104

104

Diagnostic tests

 Hausman test (χ²)

10.60

[0.101]

6.41

[0.202]

− 

− 

− 

− 

 Wooldridge Autocorrelation test

18.069 [0.2390]

28.32 [0.132]

 Normality test

2.99 [0.2238]

4.49 [0.1060]

 Heteroskedasticity test

18.00 [0.1200]

27.73 [0.1021]