The Remittances-Output Nexus: Empirical Evidence from Egypt

Table 2

Cointegration bounds test.

Dependent variable	Forcing variable	𝐹 statistic	95% critical bounds		𝑡 statistic	95% critical bounds		Cointegration
			𝐼(0)	𝐼(1)		𝐼(0)	𝐼(1)
ΔlogGDP	logrem	7.883	6.56	7.30	−3.865	−3.410	−3.690	Positive
Δlogrem	logGDP	0.802	6.56	7.30	−0.954	−3.410	−3.690	Absent

Δ denotes the first-order difference operator. The 𝐹-test examines the joint significance of the coefficients of the lagged level variables (𝐻₀:  𝜏₁=𝜏₂=0) and the 𝑡-test examines the statistical significance of the coefficient on the lagged level of the dependent variable (𝐻₀: 𝜏₁ = 0). The lower and upper bound critical values are obtained from Pesaran et al. [5].