The Remittances-Output Nexus: Empirical Evidence from Egypt

Table 5

Autoregressive distributed lag estimates. ARDL(1,0) selected based on Schwarz Bayesian criterion.

	Regressors
	Intercept	Trend	logrem	logGDP𝑡−1
Coefficient	7.949	0.0148	0.016	0.658
Standard error	2.69	0.005	0.009	0.114
P value	0.007	0.007	0.084	0.00
Diagnostic tests
Test statistics	LM version	𝐹 version
A: serial correlation	𝜒^2(1)=2.718; P value (0.10)	𝐹(1,26)=2.50; P value (0.126)
B: functional form	𝜒^2(1)=0.728; P value (0.39)	𝐹(1,26)=0.625; P value (0.436)
C: normality	𝜒^2(2)=1.373; P value (0.50)	Not applicable
D: heteroscedasticity	𝜒^2(1)=1.54; P value (0.21)	𝐹(1,29)=1.52; P value (0.227)

A: Lagrange multiplier test of residual serial correlation.
B: Ramsey’s RESET test using the square of the fitted values.
C: based on a test of skewness and kurtosis of residuals.
D: based on the regression of squared residuals on squared fitted values.