Ious years might be adjusted by 68 annually. 4.5. Robustness Check Evaluation As pointed out early, the FMOLS, DOLS, and CCR were applied to check the robustness on the empirical findings. For that Emedastine Autophagy reason, these estimates are presented in Table 5.Table 5. Robustness verify. FMOLS Variable LMVA LT LDC LM LEC C Coefficient p-Value 0.009 0.009 0.000 0.261 0.000 0.000 DOLS Coefficient 0.167 -0.529 0.159 -0.212 0.881 7.035 p-Value 0.030 0.000 0.000 0.003 0.000 0.000 CCR Coefficient p-Value 0.039 0.068 0.002 0.516 0.000 0.-0.256 -0.224 0.152 -0.107 0.913 six.-0.252 -0.274 0.140 -0.074 0.906 six.Source: Authors’ estimate.As seen in Table 5, the estimated coefficients from the DOLS are the same as the ARDL long-run estimated coefficients. Industrialization, financial improvement when measured by domestic credit to the private sector, and energy consumption showed a good influence on economic growth at 5 , 1 , and 1 significance levels, respectively. Even so, financial improvement when measured by dollars Supply and trade openness displayed a statistically significant damaging effect on economic growth at a 1 significance level. In contrast to this, the estimated coefficient of industrialization depending on the FMOLS and CCR estimators was discovered to be negatively connected with economic growth that is not in line together with the ARDL long-run coefficients. Apart from that, income provide as an indicator for monetary improvement was discovered to become insignificant. Moreover, domestic credit to the private sector and energy consumption positively influenced financial growth at a 1 significance level determined by the FMOLS and CCR estimators. Furthermore, openness demonstrated a adverse effect on financial growth. These Oxyfluorfen Autophagy findings supply a powerful empirical testimony that industrialization and economic improvement are essential keys to reaching sustained economic development inside the lengthy run in Indonesia. four.6. Diagnostic Test and Parameter Stability The diagnostic tests of heteroscedasticity, serial correlation, normality, and Ramsey RESET were applied, and the final results are reported in Table six. Table six shows that the estimated model is homoscedastic, not struggling with serial correlation, and generally distributed and that the functional type is correctly formulated. Furthermore, the cumulative sum (CUSUM) of recursive residuals and cumulative sum square (CUSUMSQ) of recursive residuals procedures had been conducted to detect the stability and reliability of estimated coefficients within the lengthy run and brief run. The results are presented in Figures 1 and two, respectively.Table 6. Diagnostic tests. Table 6. Diagnostic tests.Economies 2021, 9, 174 HeteroscedasticityTest Test Test: Breusch-Pagan-Godfrey Heteroscedasticity Test: Breusch-Pagan-Godfrey Breusch-Godfrey Serial Correlation LM Test Breusch-Godfrey Serial Correlation LM Test Normality Jaraue-Bera Normality Jaraue-Bera Ramsey RESETTable six. Diagnostic tests. Ramsey RESETTest TestSource: Authors’ estimate. Supply: Authors’ estimate.Test Heteroscedasticity Test:F-Statistic F-Statistic 1.22 1.22 4.497 four.497 0.297 0.297 0.001 0.F-StatisticProbability Probability 0.38 0.38 0.05 0.05 0.86 0.86 0.97 0.Probability10 of1.22 0.38 Table 66shows that Paganestimatedmodel is homoscedastic, not affected by serial Table shows thatthe estimated model is homoscedastic, not struggling with serial Breusch- the -Godfrey correlation, and commonly distributed and that the functional kind is properly formulated. correlation, andBreusch-Godfrey Serial and that the f.
