Page 13 - Azerbaijan State University of Economics

Aboubaker Khoualed, Taher Makhloufi, Ahmed Makhloufi, Elyas Luqman: The Impact
of Foreign Direct Investment (FDI) on Economic Development: The Case of Algeria

Determining the Decimal Value for the FARDL Model

Table 5: Determining the Decimal Value for the FARDL Model

The Test Value

KSTAR 3.9099

Source: Compiled by the researcher depending on: outputs of EViews 12.

Table 05 presents us with the optimal partial frequency, noting that the frequency
parameter achieving the minimum AIC value is 3.9099.

Bound Test for Cointegration
To test the existence of a long-term equilibrium link between the study variables, the
Bound Test is used within the Augmented ARDL framework, because the critical
values according to the ARDL methodology do not provide us with true values due to
the presence of a decimal value in theF ARDL model. This test is conducted according
to three hypotheses as follows:

Overall F-Bounds Test
The test results are as follows:

Table 6: Overall F-Bounds Test Results

Source: Compiled by the researcher depending on: outputs of EViews 12.

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