The nonlinear ARDL approach and productivity bias hypothesis: Evidence from 68 countries

Mohsen Bahmani-Oskooee and Ridha Nouira

The Quarterly Review of Economics and Finance, 2021, vol. 80, issue C, 80-89

Abstract: In this paper, we test the Productivity Bias Hypothesis for each of the 68 countries for which we were able to collect data. When we used the linear ARDL approach, we found support for the hypothesis in 16 countries in the long run. However, when we used the nonlinear ARDL approach, we added 11 more countries to the list. Furthermore, the nonlinear approach supported the short-run asymmetric effects of productivity ratio in 47 countries that lasted into long run asymmetric effects in 29 countries in the sample. Seventeen additional countries were added to the list when both models were augmented with a few additional determinants of the real exchange rate.

Keywords: Productivity bias hypothesis; Nonlinear ARDL; Asymmetry; 68 countries (search for similar items in EconPapers)
JEL-codes: F31 O40 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:80:y:2021:i:c:p:80-89

DOI: 10.1016/j.qref.2021.02.001

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