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Since all the variables have been found to be integrated of a unique order we have identified the long run relationship among them by establishing the panel cointegration.
where, i = 1, 2, − N and t = 1, 2, − T, and HCE, GDP and variables i.e. infant mortality and life expectancy under HSI are assumed to be integrated of order one, I(1).
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Accordingly, all variables are integrated of order one I(1).
We therefore say they are integrated of order one.
With the ADF test, both of these variables are integrated of order one.
This means that all the variables are integrated of order one, that is I(1).
In other words, the variables are integrated of order 1 i.e. I(1) series).
Thus, the KPSS tests suggest that these three series are integrated of order two or higher.
This indicates that all the data series are integrated of order one, or I(1).
The variables in first differences are all stationary, indicating that they are integrated of order one or I(1).
The KPSS test shows that the variables are integrated of order one for all countries in the sample.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com