new characteristics of inequalities in the information society and ...

ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 5, Issue 1/ 2013 ), pp. 38
URL: http://www.reaser.eu
e-mail: editors@reaser.eu
coefficient
2
0 , the current account is stationary around some constant, and if
2
0 , it is
zero.
Table 1. Unit Root Tests Results in Level
Variables ADF PP Order of
Integration
MAROCCO Investment -1.95099 -2.124976 I(1)
Saving -0.150967 -1.163776 I(1)
Current
-4.147020* -4.689044 I(0)
account
TUNISIA Investment -2.757430 -2.451153 I(1)
Saving -1.744239 -2.669670 I(1)
Current
-4.148888 -7.486676 I(0)
account
Critical values 1% 5% 10% 1% 5% 10%
-4.3098 -3.5742 -3.2217 -4.2732 -3.5577 -3.2123
Table2. Unit Root Tests Results in first Difference
Variables ADF PP Order of
Integration
MAROCCO Investment -4.39824 -4.652099 I(0)
Saving -4.383158 -12.37656 I(0)
TUNISIA Investment -3.853751 -3.920406 I(0)
Saving -3.703005 -6.40093 I(0)
Critical values 1% 5% 10% 1% 5% 10%
-4.323 -3.5806 -3.2253 -4.284 -3.5628 -3.2152
Tables 1 and 2 show the results of the unit root tests for each variable (Gross Domestic Saving,
Gross Domestic Investment and Current Account) for Tunisia and Morocco during the period 1975-
2010.
Results of ADF and Phillips-Perron tests show that gross domestic investment and gross domestic
savings are stationary in first differences. These two series are integrated of order one. The current
account series are stationary in level; they are integrated of order zero.
These results imply the possibility of the existence of a cointegration relationship between savings
and investment. Since the variables of the model are in the same order, we can use the Engel and
Granger cointegration test to estimate error model correction to inspect the long run and short run
relationship between them. The current account Stationary means that Morocco and Tunisia facing a
solvency constraint and long-term savings and investment are potentially cointegrated.