Hypothesizing directional causality between the governance indicators and economic growth: the case of Afghanistan

Future Business Journal

Table 2 Result of unit root test

Variables	ADF unit root test result^a			Phillips–Perron unit root test result^a
Variables	Level	First differenced	Second differenced	Level	First differenced	Second differenced
CC	− 1.651 [0.450]	− 2.424 [0.140]	− 8.155 [0.000]***	− 1.632 [0.459]	− 3.564 [0.009]***	− 7.483 [0.000]***
EG	− 1.036 [0.733]	− 2.354 [0.159]	− 6.231 [0.000]***	− 2.173 [0.217]	− 3.843 [0.004]***	− 7.484 [0.000]***
GE	− 3.668 [0.007]***	− 3.445 [0.012]**	− 7.536 [0.000]***	− 2.047 [0.266]	− 3.506 [0.011]**	− 7.536 [0.000]***
PS	− 2.432 [0.137]	− 2.251 [0.191]	− 9.794 [0.000]***	− 1.644 [0.454]	− 3.739 [0.005]***	− 7.483 [0.000]***
RL	− 1.994 [0.288]	− 1.653 [0.449]	− 11.788 [0.000]***	− 0.994 [0.750]	− 3.522 [0.010]***	− 7.488 [0.000]***
RQ	− 2.352 [0.168]	− 1.164 [0.683]	− 7.253 [0.000]***	− 1.113 [0.705]	− 3.295 [0.019]***	− 7.490 [0.000]***
VA	− 2.292 [0.177]	− 2.087 [0.250]	− 7.431 [0.000]***	− 0.924 [0.773]	− 2.213 [0.203]	− 7.491 [0.000]***

***Significant at 1% level of confidence (p < 0.01), **Significant at 5% level of confidence (p < 0.05), *Significant at 10% level of confidence (p < 0.10)
[ ] denotes p values
^aSample size adjusted from 2003Q03 to 2018Q04