Ardl bound testing in stata forex

PSS propose a bound testing procedure. It involves just ardl bound testing in stata forex single-equation set-up, making it simple to implement and ardl test in stata forex.

Different variables can be assigned different lag-lengths as they enter the model. 1 to p ,and 0 to q1, 0 to q2, 0 to q3 and 0 to q4 respectively. We need to select the appropriate values for maximum lags, p, q1, q2, q3 and q4. The smaller the value of an information criterion the better the results. The rejection implies that we have a long-run relationship.

Correspondence to: Aweda Nurudeen Olawale , Department of Statistics, Yaba College of Technology, Nigeria. Cite this paper: Lawal Ganiyu Omoniyi , Aweda Nurudeen Olawale , An Application of ARDL Bounds Testing Procedure to the Estimation of Level Relationship between Exchange Rate, Crude Oil Price and Inflation Rate in Nigeria, International Journal of Statistics and Applications, Vol. Test of Granger Causality between Exchange Rate, Crude Oil Prices and Inflation Rate6. Also, if yt contains stochastic trend, we introduce a time trend t in equation 1. 2 above and test for the unit root. The null hypothesis is one of series contain stochastic trend against an alternative of trend stationarity.