Sayed Hossain commented> Out of 11 statistics, only 2 statistics are significant while the

rest 9 statistics have failed to reject null hypothesis meaning that all variables LY, LEN, LF

and LK are not cointegrated. Meaning all these variables do not have long run

relationship. So we can not run panel VECM model.

have run Fisher panel cointegrating test (Johansen sense) and got following

result. I assume here 10 percent level of signficance. Are these two variables

cointegrated?

Sayed Hossain commented> At "None" we fail to reject null Fisher trace statistics and also

Fisher max-eigen statistics meaning that we accept null. That is two variables GDP and

CPI are not cointegrated meaning they do not move together in the long run. We are

unable to run panel VECM model. It is Johansen type multivariate of panel cointegration

test meaning that if we change the side of GDP and CPI setting while running Johansen

Fisher panel cointegration test, decision would be same.

Ade Kutu

Afolabi Luqman

Abdullah Sonnet

Asad Zaman

Atiq Rehman

Burcu Özcan

Ghumro Niaz Hussain

Muhammad Anees

Mohammad Zhafran

Muzammil Bhatti

Monis Syed

Mine PD

Moulana N. Cholovik

Muili Adebayo Hamid

Nicat Gasim

Najid Iqbal

Nasiru Inuwa

Noman Arshed

Rapelanoro Nady

Seye Olasehinde-Williams

Suborno Aditya

Sayed Hossain

Shishir Sakya

Sheikh Muzammil Naseer

Tella Oluwatoba Ibrahim

Younes Azzouz

Meo School of Research

Shishir Shakya

Noman Arshed

Hossain Academy Note

Univariate Models |

Multivariate Models |

Panel Data Model |