Table 4 FDI-outflow for symmetric and asymmetric ADRL bounds co-integration test

3. F_Q (lnQ|lnK, lnL, lnDum1, lnoutflow, \(\ln \left( {{\text{outflow}}*{\text{Dum}}1} \right)\), lnPcrd, lnTrade, Brk)

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

9.4100^a

Co-integration

Diagnostic test

 D–W

2.00387

 JB- normality test

2.0348

[0.36152]

 LM test

6.9903

[0.3550]

 Het: ARCH

17.278

[0.7478]

 RESET test

1.7286

[0.2179]

Critical value bounds (k = 8)

10%

1.85

2.85

5%

2.11

3.15

1%

2.62

3.77

4. F_Q (lnQ|lnK, lnL lnDum1, lnoutflow⁺, lnoutflow⁻, ln(outflow*Dum1), lnPcrd, lnTrade, Brk)

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

7.7703^a

Cointegration

Diagnostic test

 D–W

2.1525

 JB- normality test

2.0348

[0.3615]

 LM test

14.161

[0.0885]

 Het: ARCH

17.278

[0.7478]

 RESET test

19.558

[0.6106]

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