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The basic testing procedure requires four steps: ADF and PP unit root tests, Bound tests for Co-integration, ARDL approach and VECM method.
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ARDL bound test for co-integration and VECM framework applied.
Finally, we are using newly developed ARDL bound testing for investigating long-run association.
Finally, we used the newly developed ARDL bound testing to investigate the long-run association.
Furthermore, the innovation magnitude bound test and innovation whiteness test are employed for verifying the performance of the proposed method.
This implies the model is stable and thus can be used for causality, bound test and long-run association.
Long-run cointegration was investigated through ARDL bound testing with a null hypothesis and no cointegration; the test results are exhibited in Table 2. Model 1 and 2 refer to financial innovation using 2 proxy variables (M2/M1 and DCB).
This study was carried out to capture the impact of financial innovation on economic growth in Bangladesh for the period from 1980 to 2016 by applying ARDL bound testing and causality based on the ECM to capture the directional association.
To capture the influence of financial innovation on economic growth, we estimated the long-run cointegration by applying Autoregressive Distributed Lag (ARDL) bound testing and Granger causality-based Error Correction Model (ECM) to capture the directional association.
ARDL bound testing was used to confirm the long-run cointegration between financial innovation and economic growth, and our results showed higher F-statistics for both proxy variables in comparison to the critical values proposed by Pesaran et al. (2001a, 2001b) and Narayan (2004).
To assess the effect of binders on the properties of the base stabilised with hydraulically bound mixtures tests were conducted to measure the following: compressive strength after 7, 14, 28 and 42 days of curing, freeze-thaw resistance.
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