Uncovered interest rate parity phenomenon and determinants of domestic interest rates: an analysis of Pakistan and China economies

Future Business Journal

Table 1 Findings of the Granger causality

Null hypothesis	Obs	F-statistic	P value
DIRC does not Granger cause DIR	30	1.889	0.172
DIR does not Granger cause DIRC		0.309	0.737
ER does not Granger cause DIR	30	0.639	0.536
DIR does not Granger cause ER		0.375	0.691
ERC does not Granger cause DIR	30	0.279	0.759
DIR does not Granger cause ERC		0.848	0.440
ER does not Granger cause DIRC	30	0.055	0.946
DIRC does not Granger cause ER		0.172	0.843
ERC does not Granger cause DIRC	30	0.145	0.866
DIRC does not Granger cause ERC		3.463	0.047
ERC does not Granger cause ER	30	0.004	0.997
ER does not Granger cause ERC		3.046	0.066