Table 7:
Granger causality test for output and prices in four PICs.
Country
-statistics
ECT
(
statistics)
LM2
LIR
LER
Effects on output
Samoa
17.583***
14.189***
4.228*
−0.6458**
(−2.697)
Solomon Islands
7.671***
1.759
3.492*
−0.3801***
(−3.056)
Tonga
7.097***
1.342
5.081**
−0.4181***
(−3.306)
Vanuatu
8.732***
0.148
3.768*
−0.3495**
(−2.540)
Effects on prices
Samoa
5.079***
0.371
3.767**
−0.5965**
(−2.249)
Solomon Islands
8.131***
4.876**
11.947***
−0.3159**
(−2.757)
Tonga
16.609***
14.007***
5.984**
−0.9035***
(−4.176)
Vanuatu
4.093**
0.633
3.816*
−0.6684***
(−5.743)
Notes: *, **, and ***indicate significance at 10%, 5%, and 1% levels, respectively. Figures in parentheses representing
statistics.