Page 1 of 1

ARDL interpretation

Posted: Sun May 05, 2013 2:12 am
by SoniaAjaz
Hi

I have done my ARDL estimation for the "impact of financial development on economic growth" and I have got the coefficients with negative signs. I want to ask whether we interpret the signs of coefficients opposite to that of the result we get??
if no, then what can be the cause of the negative signs because according to the theory financial development cannot be decreasing economic growth in the long run.

Re: ARDL interpretation

Posted: Tue May 14, 2013 12:51 am
by SoniaAjaz
Eviews team kindly post a reply

Re: ARDL interpretation

Posted: Tue May 14, 2013 6:27 am
by EViews Gareth
The EViews team does not give econometric advice.

Re: ARDL interpretation

Posted: Fri May 31, 2013 1:58 pm
by econometrics
Hi

I have done my ARDL estimation for the "impact of financial development on economic growth" and I have got the coefficients with negative signs. I want to ask whether we interpret the signs of coefficients opposite to that of the result we get??
if no, then what can be the cause of the negative signs because according to the theory financial development cannot be decreasing economic growth in the long run.
If you are using different proxies for financial development then some might show negative impacts though it is very unlikely. You must check the specification of ur model, source for data should be authentic. Plus, when u say ardl... it is wald test and u should focus on its f-stat value.
Thought I don't remember exactly where but in some research article, there was an idea that there's saturation point where financial development will negatively affect economic growth.

Re: ARDL interpretation

Posted: Mon Jun 17, 2013 10:05 pm
by aftab
Hi

Can it is possibal to explain the method for using Eviews for ARDL approach

Re: ARDL interpretation

Posted: Wed Jun 19, 2013 2:19 am
by SoniaAjaz

If you are using different proxies for financial development then some might show negative impacts though it is very unlikely. You must check the specification of ur model, source for data should be authentic. Plus, when u say ardl... it is wald test and u should focus on its f-stat value.
Thought I don't remember exactly where but in some research article, there was an idea that there's saturation point where financial development will negatively affect economic growth.
Thanks for the concern. But my all variables have negative signs. Is there any sort of thing that we transfer the variables on the other hand side of the equation and because of that all the signs should be changed manually?