Table 5 Error correction mechanism

C

1.450

0.489

2.965

0.006

ϵ _t-1

−0.318

0.119

−2.678

0.013

Δ(LPROD)_t-2

0.729

4.568

1.779

0.087

Δ(LTO)_t-2

−0.511

3.942

2.041

0.052

Statistical tests

R-squared

0.561

Mean dependent var

0.900

Adjusted R-squared

0.538

S.D. dependent var

8.521

S.E. of regression

2.450

Akaike info criterion

6.773

Sum squared resid

144.135

Schwarz criterion

6.867

Log likelihood

−99.606

F-statistic

15.851

Durbin-Watson stat

2.177

Prob(F-statistic)

0.000

Residual tests:

Jarque-Bera test

0.903 (0.636)

ARCH test

0.220 (0.803)

White Heteroskedasticity

0.569 (0.188)

Breusch-Godfrey serial correlation LM test

1.324 (0.117)

Stability tests:

Ramsey RESET test

2.027(0.165)