Skip to main content
Future Business Journal

Table 6 Causality results

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

Excluded

Lag

\( (k + d_{\hbox{max} } ) \)

\( (\chi^{2} ) \)

p value

Direction of causality

Dependent variable: EG

 CC

2

2 + 7

0.436

0.793

CC ≠ EG

 RL

2

2 + 7

7.546

0.023**

RL → EG

 GE

2

2 + 7

12.096

0.002***

GE → EG

 PS

2

2 + 7

3.317

0.190

PS ≠ GE

 RQ

2

2 + 7

1.224

0.542

RQ ≠ EG

 VA

2

2 + 7

4.323

0.115

VA ≠ EG

Dependent variable: CC

 EG

2

2 + 7

15.170

0.000***

EG → CC

 RL

2

2 + 7

5.106

0.077*

RL → CC

 GE

2

2 + 7

3.284

0.193

GE ≠ CC

 PS

2

2 + 7

24.764

0.000***

PS → CC

 RQ

2

2 + 7

7.755

0.020**

RQ → CC

 VA

2

2 + 7

21.132

0.000***

VA → CC

Dependent variable: RL

 EG

2

2 + 7

21.175

0.000***

EG → RL

 CC

2

2 + 7

28.624

0.000***

CC → RL

 GE

2

2 + 7

2.663

0.264

GE ≠ RL

 PS

2

2 + 7

7.264

0.026**

PS → RL

 RQ

2

2 + 7

9.628

0.008***

RQ → RL

 VA

2

2 + 7

6.720

0.037**

VA → RL

Dependent variable: GE

 EG

2

2 + 7

5.255

0.072*

EG → GE

 CC

2

2 + 7

1.040

0.594

CC ≠ GE

 RL

2

2 + 7

9.374

0.009***

RL → GE

 PS

2

2 + 7

39.609

0.000***

PS → GE

 RQ

2

2 + 7

9.411

0.009***

RQ → GE

 VA

2

2 + 7

5.271

0.071**

VA → GE

Dependent variable: PS

 EG

2

2 + 7

7.927

0.019**

EG → PS

 CC

2

2 + 7

6.117

0.046**

CC → PS

 RL

2

2 + 7

16.851

0.000**

RL → PS

 GE

2

2 + 7

1.688

0.429

GE ≠ PS

 RQ

2

2 + 7

2.048

0.359

RQ ≠ PS

 VA

2

2 + 7

5.070

0.079*

VA → PS

Dependent variable: RQ

 EG

2

2 + 7

7.720

0.021**

EG → RQ

 CC

2

2 + 7

1.457

0.482

CC ≠ RQ

 RL

2

2 + 7

7.184

0.027**

RL → RQ

 GE

2

2 + 7

5.764

0.056*

GE → RQ

 PS

2

2 + 7

2.269

0.321

RQ ≠ RQ

 VA

2

2 + 7

0.447

0.799

VA ≠ RQ

Dependent variable: VA

 EG

2

2 + 7

0.012

0.993

EG ≠ VA

 CC

2

2 + 7

1.773

0.412

CC ≠ VA

 RL

2

2 + 7

3.299

0.192

RL ≠ VA

 GE

2

2 + 7

14.018

0.000***

GE → VA

 PS

2

2 + 7

2.826

0.243

PS ≠ VA

 RQ

2

2 + 7

15.149

0.000***

RQ → VA

  1. Significant if ***p < 0.01, **p < 0.05, *p < 0.10
  2. Lag denotes the number of lags selected by FEP, AIC, SIC, and HQ. \( (k + d_{\hbox{max} } ) \) denotes the number of lags plus the number of parameters (VAR order). → denotes the direction of one-way causality, and ≠ denotes no causality relationship between the variables
Back to article page