ECTpt1 is not observable. Therefore, it is replaced by Ept1GDPPt11445.8
7650.7OFDIt189830.2OPENt166539.8DIt1. Breusch-Godfrey Lagrange
multiplier test is used again to determine the value of n in each equation. The
results of the short-run Granger causality test are reported in Table 10. Based on Ftest,
we cannot find evidence to support the existence of short-run Granger causality
between the GDPP and OFDI. The estimated coefficient of Ept1 is 0.0911 with tvalue
equals to 1.8902 under the null hypothesis of t0. This null hypothesis is
rejected at the 10% significance level. The significant negative coefficient of error
correction term in equation (10) suggests that there is a long-run causality from
OFDI to GDPP.