Hi All
If variables after first difference are stationary only at the 5% and 10% critical values, and not at 1% can I still go ahead, indicating in my thesis that my vars are stationary and report and run models (eg VAR) that take stationary variables based on first difference results. At level, non of my variables are stationary. My sample size is quite small because of data availability (25 Years, no gaps, time series).
In case type of variable matter, I have gdp, capital gross formulation and fdi which I have to limit to 25 years because of the dependent variable which has data only available for 25 years
Thanks
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