Table 5: Long-run estimates for output in four PICs.

Country LM2 LIR LER Diagnostic tests Samoa 0.290*** (25.439) −0.718*** (−12.528) −0.281*** (−4.597) JB = 10.631 [0.2235]; AR(1) = 8.336 [0.9382]; AR(2) = 10.771 [0.8233]; Solomon Islands 0.803*** (15.550) −0.165* (−2.021) −0.511*** (−4.774) JB = 8.331 [0.4018]; AR(1) = 14.725 [0.5448]; AR(2) = 14.674 [0.5486]; Tonga 0.297*** (38.547) −0.523*** (−10.826) −0.267*** (−9.557) JB = 10.195 [0.2516]; AR(1) = 16.454 [0.4217]; AR(2) = 12.329 [0.7210]; Vanuatu 0.204** (2.655) −0.715*** (−8.373) −0.413 (−1.236) JB = 12.875 [0.2108]; AR(1) = 12.791 [0.6880]; AR(2) = 15.375 [0.4973];

Notes: Values in bracket [ ] are probability value of the test statistics. Values in parentheses ( ) are value of the test statistics. JB is Jarque-Bera test, null hypothesis: normal residuals; AR(1) is Breusch-Godfrey serial correlation LM test with lag 1, null hypothesis: no autocorrelation. *, **, and ***indicate significance at the 10, 5, and 1 percent levels, respectively.