Future Business Journal

Table 7 Johansen’s cointegration test

From: Does financial repression inhibit or facilitate private investment? The case of Ethiopia

No. of cointegration vectors	Trace test		Maximum Eigen value test
No. of cointegration vectors	Statistics	5% critical value	Statistics	5% critical value
None (0)	238.09	156.00	59.58	51.42
At most (1)	178.51	124.24	53.66	45.28
At most (2)	124.85	94.15	42.67	39.37
At most (3)	82.18	68.52	40.18	33.46
At most (4)	41.99*	47.21	23.30	27.07
At most (5)	18.70	29.68	12.09	20.97
At most (6)	6.61	15.41	6.42	14.07
At most (7)	0.19	3.76	0.19	3.76

The null hypothesis for the number of cointegrating vectors (r) is that r = 0, r < = 1, r < = 2, r < = 3, r < = 4 and so on. Reject the null when statistics > 5% critical values, and accept the null when statistics < 5% critical values

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