Australia and New Zealand CER Agreement and Breakpoints in Bilateral Trade: An Application of the Wald-type Test

Kankesu Jayanthakumaran and Mosayeb Pahlavani ()
Additional contact information
Mosayeb Pahlavani: University of Wollongong, http://www.uow.edu.au/index.html

Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia

Abstract: This paper investigates the impact of the Australia-New Zealand Closer Economic Relations (CER) Trade Agreement on bilateral trade of each member country by using historical time series data before and after the implementation of the CER. We determined the existence of endogenously determined structural breaks over the last 30 years. The Vogelsang (1997) Wald-type testing procedure is then used to test for the existence of a break at an unknown time in the trend function of the dynamic time series. The advantage of this model is that the procedure does not impose any restriction on the nature of the data since it allows for either trending or unit root series, or both, in the model. Using a Wald-type test for detecting breaks in the trend function of a univariate time series, we found that a significant trend break detected in New Zealand in 1988 coincided with the extensive review of the CER in 1988.

Keywords: Trend breaks; Wald-type testing; Australia-New Zealand integration (search for similar items in EconPapers)
JEL-codes: C12 C22 C52 F13 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2006
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.uow.edu.au/content/groups/public/@web/@ ... ts/doc/uow012219.pdf (application/pdf)

Related works:
Journal Article: Australia and New Zealand CER agreement and breakpoints in bilateral trade: an application of the Wald-type test (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uow:depec1:wp06-06

Access Statistics for this paper

More papers in Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Peter Siminski ( this e-mail address is bad, please contact ).