Table 5: Panel unit root test [38].

VariableLevelFirst difference
ConstantConstant + trendConstantConstant + trend

Log of GDP12.44540.78674−13.409***−9.96431***
GDP volatility−4.9473***−6.3950***−19.0850***−16.803***
Consumption volatility−4.3329***−4.0761***−19.6400***−16.336***
Investment volatility−20.811***−6.1437***−4.4186***−18.687***
Gov. consumption volatility−5.6580***−2.6002***−20.813***−17.653***
Investment share of GDP−0.7502−2.8268**−17.7615***−14.5888***
Log of population6.6528−1.0168−4.4148***−3.1863***
Education−0.26691.5139−3.1892*** ***

***, **Rejection of the null hypothesis of the presence of a unit root at 1% and 5% level of significance.
The choice of the optimal lag for the underlying autoregressive equation is based on the Schwarz identification criterion (SIC).