The impact of wind and geothermal energy consumption on economic growth and financial development: evidence on selected countries

Geothermal Energy

Science – Society – Technology

Table 7 Dumitrescu–Hurlin causality test results

Model 1:	\({\rm lnFD}_{it}= {\beta }_{0}+{\beta }_{1}{\rm lnGEO}_{it}+{\beta }_{2}{\rm lnWIND}_{it}+ {\vartheta }_{t}\)
Null hypothesis	Wald statistic	Z-bar statistic	Prob
\({\rm lnGEO}\nrightarrow{\rm lnFD}\)	1.242	0.406	0.684
\({\rm lnFD}\nrightarrow {\rm lnGEO}\)	2.083^**	2.076	0.037
\({\rm lnWIND}\nrightarrow {\rm lnFD}\)	1.639	1.196	0.231
\({\rm lnFD}\nrightarrow {\rm lnWIND}\)	2.568^***	3.040	0.002

Model 2:	\({\rm lnGDP}_{it}= {\beta }_{0}+{\beta }_{1}{\rm lnGEO}_{it}+{\beta }_{2}{\rm lnWIND}_{it}+ {\vartheta }_{t}\)
Null hypothesis	Wald statistic	Z-bar statistic	Prob
\({\rm lnGEO}\nrightarrow {\rm lnGDP}\)	2.224^**	2.356	0.018
\({\rm lnGDP}\nrightarrow {\rm lnGEO}\)	1.600	1.117	0.263
\({\rm lnWIND}\nrightarrow {\rm lnGDP}\)	3.337^***	4.568	0.000
\({\rm lnGDP}\nrightarrow {\rm lnWIND}\)	0.829	− 0.413	0.679

Maximum lag length is determined as 1. ***, **, and * denote significance at 1%, 5%, and 10% significance levels, respectively