This is an EViews study in determining causal relationship between Investment, GDP and Tertiary Education spending.
Hi Emerson,
In your case, I think, you have to use the 'Bounds testing approach'.
Hope this helps
No. Only stationary variables should be used. If a variable is not I(0) or I(1) check if it is I(2). If yes VAR may be applied. Otherwise it may not be.
Only one of the variable is I(1)
What are the rest?
The rest of the two variables are I(2)
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