Table 5 Results of selection model tests for economic growth during 1992–2016 with human capital
Hypothesis H0 (restricted model) | Hypothesis H1 (unrestricted model) | The test result | Value of the test statistic (P value) |
|---|---|---|---|
Hausman test (to select the random effects and the fixed effects model) | |||
SDM random | SDM fixed | SDM fixed | H = 40.86 (0.0000) |
SAR random | SAR fixed | SAR fixed | H = − 4645.28 () |
SEM random | SEM fixed | SEM fixed | H = 37.21 (0.000) |
LR test (for nested models) | |||
SAR fixed | SDM fixed | SDM fixed | LR = 98.9886 (0.000) |
SEM fixed | SAC fixed | SEM fixed | LR = 0.8648 (0.9296) |
SAR fixed | SAC fixed | SAC fixed | LR = 303.37 (0.000) |
SEM random | GSPRE random | SEM random | LR = 1.1744 (0.8823) |