After conducting ARDL and bound Test using Eviews 10. the variables were not cointegrated since the F-statistic was smaller than I(0), However, and looking at the long run relationship, the variables were statistically significant. In this case, what decision must be taken?
John C Frain
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looking at the long-run relationship, the variables were statistically significant.
How do you come to this conclusion? I suspect that Eviews has calculated t-statistics for these variables. These t-statistics do not have a standard t-distribution. P-values for these statistics calculated in this way are not valid indicators of significance.
My reading of your result is that there is no cointegration. Perhaps you should consider your underlying model
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