Are 19 Developed Countries' Real Per Capita GDP levels Non-stationary? A Revisit

Shyh-Wei Chen ()
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Shyh-Wei Chen: Department of Finance, Dayeh University

Economics Bulletin, 2008, vol. 3, issue 2, pages 1-11

Abstract: By using an extended dataset for 19 developed countries, this study employs a recent unit root test to re-examine the issue of the non-stationarity of real per capita GDP. The results convincingly support the view that the real per capita GDPs of Australia, France, Germany, Japan, the UK and the USA are characterized by a stationary process if the one-break unit root test is employed. Moreover, we can reject 11 of 19 countries' real per capita GDP if the two-break unit root test is employed. This is consistent with the view that business cycles exhibit stationary fluctuations around a deterministic trend.

Keywords: Per capita GDP; Structural break; Unit root (search for similar items in EconPapers)
JEL-codes: C2 O5 (search for similar items in EconPapers)
Date: 2008-01-13
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