Table 4: ECM based ARDL.

Country Null hypothesis: Wald statistic, ECTDiagnostic test

Malaysia (1, 0)RER =/> AFDI0.0840−0.5161***
(1, 0)AFDI =/> RER0.6316−0.0976

The Philippines (1, 0)RER =/> AFDI0.4160−0.4358***
(1, 0)AFDI =/> RER0.5771−0.2088*

Singapore (1, 0)RER =/> AFDI3.0906*−0.3838***
(2, 0)AFDI =/> RER0.5728−0.0996*

Notes: ***, **, and * denote significant and rejected at the 1%, 5%, and 10% levels, respectively. =/> indicates “does not Granger cause” and ECT is error correction coefficient. Figures in ( ) indicate numbers of lag structures selected based on the lowest SIC. The models were estimated using Microfit 4.1. All variables are transformed into logarithms .