Table 5

Tests of Granger Causality Running from Financial Variables to Local Currency Growth (i.e., Y stands for local currency appreciation)


GROUP

Panel

Change in No. of Companies

Panel

Turnover ratio



Lagged Y X Lagged X


Lagged Y X Lagged X
All Countries

Total

 .597**
(.058)		 .001*
(.0005)		 .0002
(.0006)

Total

 .580**
(.054)		 .033
(.035)		 .013
(.037)


Between

 .887**
(.022)		 -.057
(.021)		 .059
(.021)

Between

 .870**
(.017)
 .170**
(.063)		 -.170*
(.071)


Within

 .293**
(.077)		 -.0089
(.013)		 -.009
(.013)

Within

 .283**
(.069)		 .066+
(.037)		 .044
(.036)
MATURE

Total

 .185*
(.075)		 -.016
(.027)		 -.013
(.030)

Total

 .325**
(.064)		 -.080**
(.029)		 .149**
(.030)


Between

 .371
(.245)		 .329
(.140)		 -.342
(.175)

Between

 .463**
(.113)		 .052
(.131)		 -.049
(.141)


Within

 .175*
(.078)		 -.023
(.032)		 -.018
(.035)

Within

 .309**
(.066)		 -.056+
(.030)		 .179**
(.036)
EMERGINING

Total

 .602**
(.071)		 .007
(.006)		 -.004
(.005)

Total

 .557**
(.066)		 .087*
(.037)		 -.031
(.046)


Between

 .916**
(.028)		 -.072**
(.023)		 .075**
(.023)

Between

 .886**
(.024)		 .214**
(.075)		 -.222
(.088)


Within

 .326**
(.096)		 -.007
(.015)		 -.007
(.015)

Within

 .279**
(.085)		 .112**
(.042)		 -.019
(.045)

Standard errors are in parentheses

** = Significant at the 1% confidence level

* = Significant at the 5% confidence level

+ = Significant at the 10% confidence level

 

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