EViews.com

Greetings everyone, I have a problem regarding the contradiction between the Johansen test result and granger causality ECT result.

Based on the Johansen test result, it show that there is 1 long run co-integration. But, when I proceed with granger causality based on VECM, the coefficient of ECT is insignificant, means that there is no long run co-integration.

May I know how can I justify this? Is Johansen test just a preliminary test?

Thanks in advance.

What you need to know is that cointegration implies Granger causality.
However with cointegrated data in a VECM, it is difficult to interpret Granger causality as performed by Eviews. Eviews by default tests Granger causality on the first differences, excluding the error-correction term.
If you are interested in Granger causality in cointegrated VARs, I suggest the Toda-Yamamoto test. A post by Dave Giles will show you how.