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Table 3: Lag Test Results Source: Research findings. Notes: variables affect the sign (*)

Table 3 Lag Test Results Source: Research findings. Notes: variables affect the sign (*)

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Source: Research findings. Table 1: The Stationarity Test Results with IPS at Level Table 1 shows that the stationarity test at the level for the FDI variable with Prob. By 0.02 or less than the 5%, which means that the
Source: Research findings. Table 1: The Stationarity Test Results with IPS at Level Table 1 shows that the stationarity test at the level for the FDI variable with Prob. By 0.02 or less than the 5%, which means that the
Table 2: Results of Panel Testing of Co-Integration Panel The co-integration test in Table 2 shows that prop, in all test types smaller than the 5% real level. Thus, both variables have co- integration relationships. This co-integration relationship also means that there is a long-term equilibrium relationship between these variables and there is no room for spurious regression (Kao, 1999 in Eslamloueyan and Jokar, 2014). Because both variables have a long- term relationship, the variables could be estimated using Panel-VESM (Hill, Griffiths and Lim, 2012 in Alhayat and Muslim, 2016). Before conducting a Granger causality test with VECM, a lag length test (Lag Length Criteria) was used for VECM testing. Lag test results are presented in Table 3 as follows. FDI variable has been stationary. Nevertheless, prob. in labor is a variable greater than the real level of 5% or not stationary. Therefore, with the principle that both variables are integrated in the same order, then the variable should be tested at the first difference. The Prob. both variables at first difference were lower than the 5%. This means that both variables are integrated in the same order that is at first difference. Therefore, the test can be continued in the next stage of the co-integration test. The results of co-integration testing are presented in Table 2 as follows.
Table 2: Results of Panel Testing of Co-Integration Panel The co-integration test in Table 2 shows that prop, in all test types smaller than the 5% real level. Thus, both variables have co- integration relationships. This co-integration relationship also means that there is a long-term equilibrium relationship between these variables and there is no room for spurious regression (Kao, 1999 in Eslamloueyan and Jokar, 2014). Because both variables have a long- term relationship, the variables could be estimated using Panel-VESM (Hill, Griffiths and Lim, 2012 in Alhayat and Muslim, 2016). Before conducting a Granger causality test with VECM, a lag length test (Lag Length Criteria) was used for VECM testing. Lag test results are presented in Table 3 as follows. FDI variable has been stationary. Nevertheless, prob. in labor is a variable greater than the real level of 5% or not stationary. Therefore, with the principle that both variables are integrated in the same order, then the variable should be tested at the first difference. The Prob. both variables at first difference were lower than the 5%. This means that both variables are integrated in the same order that is at first difference. Therefore, the test can be continued in the next stage of the co-integration test. The results of co-integration testing are presented in Table 2 as follows.
Table 4: Results of the Wald Test on Short-Term Causality Panel Source: Research findings. Notes: All values in the table are F-statistics.
Table 4: Results of the Wald Test on Short-Term Causality Panel Source: Research findings. Notes: All values in the table are F-statistics.
Table 5: Results of the Wald Test on Long Term Causality Panels Source: Research findings.
Table 5: Results of the Wald Test on Long Term Causality Panels Source: Research findings.
Table 6: Results of the Wald Test on Combined Causality Panel between Short Pees Mose nrae egemernnd Source: Research findings. Notes: All values in the table are F-statistics.
Table 6: Results of the Wald Test on Combined Causality Panel between Short Pees Mose nrae egemernnd Source: Research findings. Notes: All values in the table are F-statistics.
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