Revisiting Quality of Governance, Financial Development, Globalisations on Foreign Direct Investment
Table 3: Cross-Sectional Dependence test and Second Generation (CIPS) Unit Root test
| Variable | CSD | Abs (corr) | CIPS (level) | CIPS(1st diff) | CIPS\(2nd Diff) | CIPS (Level & Trend) | CIPS (Trend & 1st diff) |
| FDII | 119.66*** | 0.710 | -6.239*** | -21.923*** | -29.196*** | -3.137*** | -19.471 *** |
| QoG | 51.90*** | 0.491 | -6.371*** | -16.763*** | -26.642 *** | -4.764 *** | -15.109*** |
| FD | 131.15*** | 0.853 | -5.382*** | -15.533 *** | -27.341*** | -2.339*** | -14.334*** |
| SGI | 108.65*** | 0.658 | -5.728*** | -16.606*** | -26.325*** | -1.963*** | -15.196*** |
| SGI | 138.40*** | 0.822 | -5.594*** | -17.258*** | -27.355*** | 6.500 *** | -15.189 *** |
| QoGFD | 87.85*** | 0.690 | -7.046 *** | -16.786 *** | -26.345*** | -5.356 *** | -14.838*** |
| PGIFD | 119.21*** | 0.776 | -5.316 *** | -15.768*** | -27.159 *** | -2.084*** | -14.706 *** |
| SGIFD | 136.49*** | 0.865 | -5.346 *** | -16.189*** | -26.181*** | -4.837*** | -13.0787*** |
| CO2 | 6.57*** | 0.448 | -3.194*** | -20.589 *** | -29.509*** | -2.899*** | -18.813*** |
| INF | 32.21*** | 0.258 | -10.406*** | -25.940*** | -29.943*** | -7.824*** | -24.015*** |
| LBF | 150.87*** | 0.986 | -13.908*** | 2.037 | -23.377*** | 6.205 | -7.518*** |
| Note: *** significant at 1%, * *at 5% and * at 10%FDII equivalent to FDI Inflows is a dependent variable. QoG is quality of governance index, PGI is political globalisation index, SGI is social globalisation index, FD is financial development. QoG, PGI, SGI and FD are independent variables. CO2 is CO2 emission, INF is the inflation rate, and LBF is labour force. CO2, INF and LBF are control variables. QoGFD is the interaction of QOG and FD, PGIFD is interaction of PGI and FD, and last SGIFD is the interaction of SGI and FD. | |||||||