Exchange Rate Movement and Foreign Direct Investment in Asean Economies

Table 4

ECM based ARDL.

Country	ARDL(𝑝,𝑞)	Null hypothesis: 𝐻0	Wald statistic, 𝜒^2	ECT	Diagnostic test
Malaysia	ARDL(1, 0)	RER =/> AFDI	0.0840	−0.5161***	𝜒^2SC=0.4264
					𝜒^2Het=0.4337
	ARDL(1, 0)	AFDI =/> RER	0.6316	−0.0976	𝜒^2SC=1.1965
					𝜒^2Het=0.5310
The Philippines	ARDL(1, 0)	RER =/> AFDI	0.4160	−0.4358***	𝜒^2SC=1.7151
					𝜒^2Het=1.5380
	ARDL(1, 0)	AFDI =/> RER	0.5771	−0.2088*	𝜒^2SC=0.6132
					𝜒^2Het=3.0729
Singapore	ARDL(1, 0)	RER =/> AFDI	3.0906*	−0.3838***	𝜒^2SC=0.1754
					𝜒^2Het=1.2630
	ARDL(2, 0)	AFDI =/> RER	0.5728	−0.0996*	𝜒^2SC=0.0485
					𝜒^2Het=1.4262

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 (𝐿).