Page 205 - Contributed Paper Session (CPS) - Volume 8

CPS2252 Zakaya R.
Table 1: Hsiao test
Hypothesis F-stat P-value
H 0 13.434427 4.818e-20**
1
H 0 1.4558271 0.11065515
2
H 0 55.35322 9.440e-30**
3
Note: significance at 5%.

2.3 Unit root test
In other parts, we will discuss on stationarity of variables. The analysis
of stationarity of exports, human resources development and institutional
quality is necessary before econometric application, indeed, to avoid
wrong regressions. The tests proposed by Levin-Lin-Chu (2002) and Im-
Pesaran-Shin (2003) will be use to find the order of our series in panel.
The two (2) tests shows that we cannot reject the null hypothesis of a
unit root for Exports (X), Human Resources Development (HDI) and
Institutional Quality (IQ) at 5% level of significance. The P-values obtained
are less than 5%. So these variables are not stationary at level.
Table 2: Unit root test (in level)

Test Im-Pesaran-Shin Test de Levin-Lin-Chu
Intercept Intercept+trend Intercept Intercept+trend None
X 0.0006* 0.0260* 0.0000* 0.0000* 0.3080
HDI 1.0000 0.4326 1.0000 0.9921 1.0000
IQ 0.0069* 0.9981 0.0009* 0.7702 0.3756
Note : * means statistically significant at 5% level
of significance. Source : Our construction on
Eviews.

But, after differencing them at one time, the null hypothesis of existence
of a unit root was rejected at 5% level of significance for both tests, and then
we conclude at the stationarity of these variables at their first difference.

Table 3: Unit root test (in difference)
Test Im-Pesaran-Shin Test de Levin-Lin-Chu

Intercept Intercept+trend Intercept Intercept+trend None
X 0.0000* 0.0000* 0.0000* 0.0000* 0.0000*
HDI 0.0080* 0.1577 0.0000* 0.0000* 0.0202*
IQ 0.0005* 0.0000* 0.0000* 0.0000* 0.0000*
Note : * means statistically significant at 5% level of significance. Source : Our
construction on Eviews

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