Appendices

Citation

Ganziro, T.T. and Vambery, R.G. (2016), "Appendices", The Exorbitant Burden, Emerald Group Publishing Limited, Leeds, pp. 229-232. https://doi.org/10.1108/978-1-78560-641-020151022

Publisher

:

Emerald Group Publishing Limited

Copyright © 2016 Emerald Group Publishing Limited

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Appendix A: OLS Regression at Level

. regress logextdebt dollarshare treasrate finopen geopower inflarate tradeopen
Source	SS	df	MS	Number of obs = 42 F( 6, 35) = 84.13 Prob > F = 0.0000 R 2 = 0.9352 Adj R 2 = 0.9240 Root MSE = .28654
Model	41.4441648	6	6.9073608
Residual	2.87376658	35	.082107617
Total	44.3179314	41	1.08092516

logextdebt	Coef.	Std. Err.	t	P > |t|	[95% Conf. Interval]
dollarshare	.0111177	.0062206	1.79	0.083	−.0015109	.0237463
treasrate	.0219825	.0261504	0.84	0.406	−.0311056	.0750705
finopen	.0028328	.0026712	1.06	0.296	−.0025901	.0082557
geopower	−.0060837	.0052236	−1.16	0.252	−.0166883	.0045208
inflarate	−.0450765	.0214111	−2.11	0.043	−.0885433	−.0016097
tradeopen	.1603571	.0115835	13.84	0.000	.1368412	.1838729
cons	1.498132	.4983647	3.01	0.005	.4863982	2.509867
. estat dwatson
Durbin-Watson d-statistic (7, 42) = .61589

Appendix B: OLS Regression at First Difference

. regress logextdebt dollarshare d1treasrate d1inflarate d1tradeopen d1finopen d1geopower d1logextdebt
Source	SS	df	MS	Number of obs = 41 F( 7, 33) = 1.17 Prob > F = 0.3443 R 2 = 0.1993 Adj R 2 = 0.0295 Root MSE = .9526
Model	7.45437973	7	1.06491139
Residual	29.9454682	33	.907438431
Total	37.399848	40	.934996199

logextdebt	Coef.	Std. Err.	t	P > |t|	[95% Conf. Interval]
dollarshare	−.0001739	.018234	−0.01	0.992	−.0372712	.0369235
d1treasrate	−.216724	.163936	−1.32	0.195	−.5502542	.1168062
d1inflarate	−.0222519	.1030221	−0.22	0.830	−.231852	.1873482
d1tradeopen	.2632775	.1618739	1.63	0.113	−.0660574	.5926124
d1finopen	−.0013528	.007358	−0.18	0.855	−.0163227	.0136172
d1geopower	.0019579	.0144262	0.14	0.893	−.0273924	.0313082
d1logextdebt	−2.384711	1.008104	−2.37	0.024	-4.435713	−.3337083
cons	3.989275	1.171103	3.41	0.002	1.606648	6.371902
. estat dwatson
Durbin-Watson d-statistic (8, 41) = .2765672

Appendix C: JOhansen Tests for Cointegration

Stata Command	vecrank logextdebt dollarshare treasrate inflarate tradeopen finopen geopower, trend(constant) max
Trend	Constant	# Obs.	40
Sample	1972–2011	Lags	2

Johansen Trace Tests
Maximum Rank	Parms	LL	Eigenvalue	Trace Statistic	5% Critical Value*
0	56	−622.35963		266.2483	124.24
1	69	−551.44204	0.97116	124.4131	94.15
2	80	−521.29419	0.77851	64.1174*	68.52
3	89	−508.04489	0.48442	37.6188	47.21
4	96	−499.7326	0.34007	20.9942	29.68
5	101	−492.69631	0.29659	6.9217	15.41
6	104	−490.38609	0.10909	2.3012	3.76
7	105	−489.23548	0.05591
Johansen Maximum Eigenvalue Tests
0	56	−622.35963		141.8352	45.28
1	69	−551.44204	0.97116	60.2957	39.37
2	80	−521.29419	0.77851	26.4986*	33.46
3	89	−508.04489	0.48442	16.6246	27.07
4	96	−499.7326	0.34007	14.0726	20.97
5	101	−492.69631	0.29659	4.6204	14.07
6	104	−490.38609	0.10909	2.3012	3.76
7	105	−489.23548	0.05591

*Critical Values (MacKinnon, Haug, and Michelis, 1996) p-values.

Appendix D: Granger Causality Wald Tests (Vargranger Stata Command)

Equation	Excluded	χ 2	df	Prob > χ 2
Causality Running from Key Determinants of US Dollar Global Reserve Status to US External Debt
logextdebt	dollarshare	0.01824	1	0.893
logextdebt	treasrate	8.17470	1	0.004
logextdebt	inflarate	12.8750	1	0.000
logextdebt	tradeopen	29.8460	1	0.000
logextdebt	finopen	12.26300	1	0.000
logextdebt	geopower	14.87200	1	0.000
logextdebt	ALL	77.69800	6	0.000
Causality Running from US External Debt to Key Determinants of US Dollar Global Reserve Status
dollarshare	logextdebt	1.3594	1	0.244
treasrate	logextdebt	2.4303	1	0.119
inflarate	logextdebt	1.8578	1	0.173
tradeopen	logextdebt	.32451	1	0.569
finopen	logextdebt	.01619	1	0.899
geopower	logextdebt	.11131	1	0.739