Table 6 Summary of hypothesis testing results and interpretation.

H₀₁

p = 0.242 (base model)

p = 0.182 (interaction model)

Accepted

Remittance paid does not have a significant effect on reducing sending costs.

H₀₂

p = 0.045 (base model) but p = 0.114 (interaction model)

Accepted (based on interaction model)

While the base model shows a significant negative effect, in the interaction model, the effect becomes statistically insignificant.

H₀₃

p = 0.157, Accepted

There is no significant moderating effect of FTRI on the relationship between remittance paid and sending cost.

H₀₄

p = 0.002, Rejected

FTRI significantly moderates the relationship between remittance received and receiving cost.

H₀₅

p = 0.003

Rejected

FTRI significantly moderates the relationship between the AML Index and sending cost.

H₀₆

p = 0.0393

Rejected

FTRI significantly moderates the relationship between the AML Index and receiving cost.

H₀₇

Sending Countries:- Base Model: p = 0.1258; Interaction Model: p = 0.0379

Receiving Countries:- Base Model: p = 0.1221; Interaction Model: p = 0.0000

Base Models-Accepted

Interaction Models-Rejected

In the base models, errors appear homoscedastic. However, the interaction models show significant heteroscedasticity, suggesting that variability in errors differs across observations in these specifications.

H₀₈

Sending Countries:- Base Model: p = 0.1280; Interaction Model: p = 0.0393

Receiving Countries:- Base Model: p = 0.1232; Interaction Model: p = 0.0000

Base Models-Accepted

Interaction Models-Rejected

In the base models, the explanatory variables appear exogenous. However, the significant results in the interaction models indicate that endogeneity may be present when interaction terms are included.

H₀₉

Sending Countries:- Base Model: p = 0.0242; Interaction Model: p = 0.0260

Receiving Countries:- Base Model: p = 0.0604 (marginally significant); Interaction Model: p = 0.0585 (marginally significant)

Sending Models-Rejected

Receiving Models-Rejected

The sending country models show significant first-order autocorrelation. The receiving country models are marginally significant, suggesting that autocorrelation may also be present, though less strongly.

H₀₁₀

Sending Countries:- Base Model: p = 0.0000; Interaction Model: p = 0.0000

Receiving Countries:- Base Model: p = 0.1219; Interaction Model: p = 0.1212

Sending Models-Rejected

Receiving Models-Accepted

For sending countries, the significant Sargan Test results suggest that the instruments used might be invalid. In contrast, for receiving countries, the instruments appear valid as the null is not rejected.