Finally, short run dynamics are estimated from the UECM as follows;
UECM for FDI inflows and GDP growth can be estimated as follows:
First the UECM is estimated that contains Carbon dioxide emissions per capita as dependent variable as shown in Table 2.
First the UECM is estimated, that contains GDP as dependent variable.
After estimating the UECM, long run relationship has been checked, through testing the hypothesis that H0:[beta]=[a.
The financial development equation is estimated using three different time-series estimators, that is, the VECM, UECM, and DOLS approaches.
Table 5 gives the results estimated by the UECM and DOLS approaches.
However, this effect is found to be significant only in the models estimated using the UECM and DOLS procedures.
Table 4 shows that our specified UECM passes all the diagnostic tests, i.
For the dynamic stability of the UECM model, the inverse roots before and after differencing (Figure A6 and A7 in the Appendix) are confirmed.