Wagner's Law in Sri Lanka: An Econometric Analysis

Table 7

Granger causality test.

Model	Null hypothesis	Lag	Obs	𝐹 Stat	Prob.
1	RGDP does not Granger cause REXP	2	48	0.0012	0.9998
	REXP does not Granger cause RGDP			0.4928	0.6142
2	RPCGDP does not Granger cause RPCEXP	2	48	0.8731	0.4631
	RPCEXP does not Granger cause RPCGDP			0.0082	0.9989
3	REXP does not Granger cause RPCGDP	2	48	1.3521	0.2692
	RPCGDP does not Granger cause REXP			0.0648	0.9919
4	CEXP does not Granger cause RGDP	2	48	7.8776	0.1021
	RGDP does not Granger cause CEXP			22.6554	1.9907
5	RPCGDP does not Granger cause (NEXP/NGDP)	2	48	0.0661	0.9360
	(NEXP/NGDP) does not Granger cause RPCGDP			0.2522	0.7782
6	RGDP does not Granger cause (NEXP/NGDP)	2	48	0.0636	0.9386
	(NEXP/NGDP) does not Granger cause RGDP			0.2284	0.7967

*, **, ** are significant at one percent, five percent, and ten percent level.