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The variables that are used for cointegration are I(1). I got the error correction term as negative but it not significant. So how should i proceed for the results?

Richard Hardy
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User1996
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  • What is the goal of your analysis? See also 1, 2 and maybe some related questions; I have answered a few of these. – Richard Hardy Mar 10 '20 at 09:37
  • thank you for the response. The goal is to check if there's any co-integration among the variables and if yes then it's Error correction model. – User1996 Mar 11 '20 at 09:12
  • The goal is to check if there's any co-integration among the variables. Then use a test, e.g. Johansen test or Engle-Granger test. (Why do you care about a negative error correction term if it does not answer the question of whether there is cointegration or not?) – Richard Hardy Mar 11 '20 at 10:48

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