Therefore, the relationships between MSLR, MULR, NEXPR, and PROD were also investigated within a cointegration testing framework.
In particular, this method is used to analyze the long-run relations among PROD, NEXPR, and WD, and PROD, NEXPR, and MSLR, as well as PROD, NEXPR, and MULR.
The cointegration test results reported in Table 2 indicate that PROD, WD, and NEXPR as well as PROD, MSLR, and NEXPR are cointegrated.
These lagged [z.sub.t] terms are the speed of adjustment residuals from the cointegration tests among PROD, WD, and NEXPR and the cointegration tests among PROD, MSLR, and NEXPR reported previously in Table 2.
In the bivariate case, the relationship between NEXPR and WD was investigated, while the trivariate cointegration tests examined the relationship among NEXPR, MSLR, and MULR.
Clear empirical evidence of cointegration among NEX PR , MSLR, and MULR exists.
VEC modeling provides information on the short-run relationships among any two or more cointegrated variables, such as NEXPR and WD, and NEXPR, MSLR, and MULR.
This modeling includes all three test variables, NEXPR, MSLR, and MULR.