Granger-causality test within an error correction model

[alnassero]

Dear,

I am examining the relationship between economic growth and different financial development indicators using panel data.I have one dependent variable (economic growth) and six independent variables (financial development indicators). I have used the panel unit root test and I found that the series is nonstationary; Thus, I have difference the series and test for cointegration. My results indicate that there is a long run cointegration relationship between economic growth and financial development indicators.

Now if I want to test for Granger-causality test within an error correction model (ECM) using Eveiws 6.0. How i can get the error correction term, test for the sig of the term, and estimate the Granger-causality test within an error correction model.

Attach is my equation

Thanks

[rban6]

I am also having the same problem. Can anyone suggest a solution as soon as possible?

[alnassero]

I am also having the same problem. Can anyone suggest a solution as soon as possible?

Did you figure out how Granger-causality test within an error correction model (ECM).

[Sanju]

Hai alnassero,

I am also working on panel granger causality. I am held up at the stage of panel vecm and inferring granger causality. Have you found a solution to using eviews 6.0 for analysis. If yes, then pls let me know.

If any one has worked on this area, kindly let us know how to proceed with the analysis.

Thanks and regards.

[shyla01]

i theory if cointegration is present within a set of variables, granger causuality should not be present. in order to run this - estimate your VEC - then VIEW - LAG STRUCTURE - GRANGER CAUSALITY, BLOCK EXOGENITY ...