FMOL OUTPUT

Dependent Variable: HCP

Method: Panel Fully Modified Least Squares (FMOLS)
Date: 08/06/17 Time: 00:18
Sample (adjusted): 1997 2015
Periods included: 19
Cross-sections included: 6
Total panel (balanced) observations: 114
Panel method: Pooled estimation
Cointegrating equation deterministics: C
Coefficient covariance computed using default method
Long-run covariance estimates (Bartlett kernel, Newey-West fixed
bandwidth)

Variable Coefficient Std. Error t-Statistic Prob.

FDI 3.20E-08 1.45E-08 2.200532 0.0299

GDP 0.062300 0.026905 2.315526 0.0225

R-squared 0.988052 Mean dependent var 4287.483

Adjusted R-squared 0.987262 S.D. dependent var 5324.559
S.E. of regression 600.9336 Sum squared resid 38278851
Long-run variance 626430.6

Sample 1994 to 2015

Dependent Variable: HCE

Method: Panel Fully Modified Least Squares (FMOLS)
Date: 08/06/17 Time: 01:35
Sample (adjusted): 1995 2015
Periods included: 21
Cross-sections included: 6
Total panel (unbalanced) observations: 125
Panel method: Grouped estimation
Long-run covariance estimates (Bartlett kernel, Newey-West fixed
bandwidth)

Variable Coefficient Std. Error t-Statistic Prob.

FDI 0.166667 2.46E-08 6784965. 0.0000

GDP 0.670651 0.062633 10.70769 0.0000

R-squared -8.045082 Mean dependent var 3.60E+08

Adjusted R-squared -8.118619 S.D. dependent var 9.92E+08
S.E. of regression 3.00E+09 Sum squared resid 1.10E+21
Long-run variance 4394392.
Robust checking

Sample from 1994 to 2015

Dependent Variable: HCE

Method: Panel Dynamic Least Squares (DOLS)
Date: 08/06/17 Time: 01:38
Sample (adjusted): 1996 2014
Periods included: 19
Cross-sections included: 6
Total panel (unbalanced) observations: 113
Panel method: Grouped estimation
Fixed leads and lags specification (lead=1, lag=1)
Long-run variances (Bartlett kernel, Newey-West fixed bandwidth) used for
individual coefficient covariances

Variable Coefficient Std. Error t-Statistic Prob.

FDI 0.166667 6.00E-08 2777972. 0.0000

GDP 0.731965 0.129670 5.644839 0.0000

R-squared -9.029635 Mean dependent var 3.35E+08

Adjusted R-squared -13.977588 S.D. dependent var 9.04E+08
S.E. of regression 3.50E+09 Sum squared resid 9.18E+20
Long-run variance 4517524.

panel unit root

fdi

Null Hypothesis: Unit root (common unit root process)

Series: D(FDI)
Date: 08/06/17 Time: 01:48
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Newey-West automatic bandwidth selection and Bartlett kernel
Total number of observations: 113
Cross-sections included: 6

Method Statistic Prob.**

-
Levin, Lin & Chu t* 5.46335 0.0000

** Probabilities are computed assuming asympotic normality

Intermediate results on D(FDI)

Cross 2nd Stage Variance HAC of Max Band-

section Coefficient of Reg Dep. Lag Lag width Obs
Indonesia -1.44850 1.E+19 5.E+18 1 1 10.0 19
Thailand -3.06780 9.E+18 4.E+18 1 1 18.0 18
Singapore -2.16929 9.E+19 5.E+19 1 1 7.0 19
Malaysia -2.04307 9.E+18 3.E+18 1 1 8.0 19
 Vietnam -1.12712 2.E+18 2.E+17 1 1 19.0 19
Philippines -1.24819 7.E+17 2.E+18 1 1 0.0 19

Coefficient t-Stat SE Reg mu* sig* Obs

Pooled -1.86480 -12.754 1.095 -0.703 1.003 113

IM Pesaran and shin

Null Hypothesis: Unit root (individual unit root process)

Series: D(FDI)
Date: 08/06/17 Time: 01:48
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Total number of observations: 113
Cross-sections included: 6

Method Statistic Prob.**

-
Im, Pesaran and Shin W-stat 7.40409 0.0000

** Probabilities are computed assuming asympotic normality

Intermediate ADF test results

Cross Max
section t-Stat Prob. E(t) E(Var) Lag Lag Obs
Indonesia -3.3443 0.0893 -2.171 0.871 1 1 19
Thailand -7.5261 0.0001 -2.171 0.897 1 1 18
Singapore -6.9114 0.0001 -2.171 0.871 1 1 19
Malaysia -5.9860 0.0006 -2.171 0.871 1 1 19
Vietnam -3.3225 0.0927 -2.171 0.871 1 1 19
Philippines -2.9056 0.1823 -2.171 0.871 1 1 19

Average -4.9993 -2.171 0.875

Breitung unit root

Null Hypothesis: Unit root (common unit root process)
Series: D(FDI)
Date: 08/06/17 Time: 01:51
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Total number of observations: 107
Cross-sections included: 6

Method Statistic Prob.**

Breitung t-stat -2.38095 0.0086

** Probabilities are computed assuming asympotic normality

Intermediate regression results on D(FDI)

Cross S.E. of
 section Regression Lag Max Lag Obs
Indonesia 5.1E+09 1 1 19
Thailand 6.9E+09 1 1 18
Singapore 2.0E+10 1 1 19
Malaysia 5.7E+09 1 1 19
Vietnam 1.7E+09 1 1 19
Philippines 1.1E+09 1 1 19

Coefficient t-Stat SE Reg Obs

Pooled -0.33304 -2.381 0.140 107

summary

Panel unit root test: Summary

Series: D(FDI)
Date: 08/06/17 Time: 01:52
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Newey-West automatic bandwidth selection and Bartlett kernel

Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -5.46335 0.0000 6 113
Breitung t-stat -2.38095 0.0086 6 107

Null: Unit root (assumes individual unit root process)

Im, Pesaran and Shin W-stat -7.40409 0.0000 6 113
ADF - Fisher Chi-square 65.7660 0.0000 6 113
PP - Fisher Chi-square 107.172 0.0000 6 119

** Probabilities for Fisher tests are computed using an asymptotic Chi

-square distribution. All other tests assume asymptotic normality.

gdp
LEVIN LIN AND CHU
Null Hypothesis: Unit root (common unit root process)
Series: D(GDP)
Date: 08/06/17 Time: 01:54
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Newey-West automatic bandwidth selection and Bartlett kernel
Total number of observations: 113
Cross-sections included: 6

Method Statistic Prob.**

-
Levin, Lin & Chu t* 2.86530 0.0021

** Probabilities are computed assuming asympotic normality

Intermediate results on D(GDP)

 Cross 2nd Stage Variance HAC of Max Band-
section Coefficient of Reg Dep. Lag Lag width Obs
Indonesia -0.80781 71699. 8446.9 1 1 19.0 19
Thailand -1.31722 96230. 22354. 1 1 18.0 18
Singapore -1.06278 8.E+06 3.E+06 1 1 11.0 19
Malaysia -1.26266 697274 180360 1 1 14.0 19
Vietnam -1.20365 2392.0 502.28 1 1 19.0 19
Philippines -1.16703 12428. 2055.4 1 1 19.0 19

Coefficient t-Stat SE Reg mu* sig* Obs

Pooled -1.11467 -7.896 1.007 -0.703 1.003 113

im pasaran and shin

Null Hypothesis: Unit root (individual unit root process)

Series: D(GDP)
Date: 08/06/17 Time: 01:56
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Total number of observations: 113
Cross-sections included: 6

Method Statistic Prob.**

-
Im, Pesaran and Shin W-stat 1.89525 0.0290

** Probabilities are computed assuming asympotic normality

Intermediate ADF test results

Cross Max
section t-Stat Prob. E(t) E(Var) Lag Lag Obs
Indonesia -2.2988 0.4147 -2.171 0.871 1 1 19
Thailand -3.3441 0.0909 -2.171 0.897 1 1 18
Singapore -3.0010 0.1572 -2.171 0.871 1 1 19
Malaysia -2.6820 0.2533 -2.171 0.871 1 1 19
Vietnam -2.9744 0.1639 -2.171 0.871 1 1 19
Philippines -3.0708 0.1406 -2.171 0.871 1 1 19

Average -2.8952 -2.171 0.875

summary

Null Hypothesis: Unit root (individual unit root process)

Series: D(GDP)
Date: 08/06/17 Time: 01:56
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Total number of observations: 113
Cross-sections included: 6
Method Statistic Prob.**
-
Im, Pesaran and Shin W-stat 1.89525 0.0290

** Probabilities are computed assuming asympotic normality

Intermediate ADF test results

Cross Max
section t-Stat Prob. E(t) E(Var) Lag Lag Obs
Indonesia -2.2988 0.4147 -2.171 0.871 1 1 19
Thailand -3.3441 0.0909 -2.171 0.897 1 1 18
Singapore -3.0010 0.1572 -2.171 0.871 1 1 19
Malaysia -2.6820 0.2533 -2.171 0.871 1 1 19
Vietnam -2.9744 0.1639 -2.171 0.871 1 1 19
Philippines -3.0708 0.1406 -2.171 0.871 1 1 19

Average -2.8952 -2.171 0.875

HCP

Panel unit root test: Summary

Series: D(HCE)
Date: 08/06/17 Time: 01:59
Sample: 1994 2015
Exogenous variables: Individual effects, individual linear trends
User-specified lags: 1
Newey-West automatic bandwidth selection and Bartlett kernel

Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -0.86802 0.1927 6 113
Breitung t-stat -1.46026 0.0721 6 107

Null: Unit root (assumes individual unit root process)

Im, Pesaran and Shin W-stat -2.88734 0.0019 6 113
ADF - Fisher Chi-square 28.6074 0.0045 6 113
PP - Fisher Chi-square 64.0647 0.0000 6 119

** Probabilities for Fisher tests are computed using an asymptotic Chi

-square distribution. All other tests assume asymptotic normality.

Im pasaran and shin unit root test

All variables are stationary at first difference

test for cointegration

there is no cointegration in 1994

move to 1995 or add the same to 1985 -