Table 3 FDI-inflow for symmetric and asymmetric ADRL bounds co-integration test

Specifications

ARDL(1, 0, 0, 1, 2, 1, 2, 0,0)

6.1032^a

Cointegration

1. F_Q (lnQ|lnK, lnL, lnDum1, lninflow, \(\ln \left( {{\text{in}} {\text{flow}}*{\text{Dum}}1} \right)\), lnPcrd, lnTrade, Brk)

Diagnostic test

 D–W

2.6319

 JB- normality test

0.5286

[0.7677]

 LM test

8.1523

[0.0170]

 Het: ARCH

17.493

[0.2308]

 RESET test

0.4703

[0.5016]

Critical value bounds (k = 8)

10%

2.196

3.37

5%

2.597

3.907

1%

3.599

5.23

2. F_Q (lnQ|lnK, lnL lnDum1, lninflow⁺, lninflow⁻, ln(inflow*Dum1), lnPcrd, lnTrade, Brk)

ARDL(2, 2, 2, 2, 2, 2, 1, 2, 1, 1)

6.4246^a

Cointegration

Diagnostic test

 D–W

2.524487

 JB- normality test

0.751

[0.6869]

 LM test

4.2948

[0.1168]

 Het: ARCH

6.189

[0.9974]

 RESET test

1.0474

[ 0.3248]

Critical value bounds (k = 9)

10%

1.8

2.8

5%

2.04

2.08

1%

2.5

3.68

The model selection ARDL is based on (AIC)

a,b & c indicate level of significance at 1%, 5% and 10% respectively

[30] for sources for critical value