Is volume index of gdp per capita stationary in oecd countries? panel stationary tests with structural breaks

Tsangyao Chang, Gengnan Chiang () and Yichun Zhang ()
Additional contact information
Yichun Zhang: Institute of Finance, Xiamen University

Economics Bulletin, 2009, vol. 29, issue 2, 588-598

Abstract: The purpose of this paper is to investigate whether volume index of GDP per capita is stationary for 24 OECD countries during the period 1970 to 2006. We utilize a panel stationary tests that allow for multiple structural breaks, developed by Carrion-i-Silvestre et al. (2005). The empirical findings are threefold: (1) when we employ univariate unit tests, such as ADF and KPSS without structural breaks, we hardly find evidence of I(0) stationarity, except for Switzerland (2) when we employ KPSS stationarity test with multiple structural breaks, we find evidence of I(0) stationarity for 22 out of 24 countries and (3) when we employ KPSS panel I(0) stationarity test with multiple structural breaks and the assumption of cross-section dependence, we find significant evidence of panel I(0) stationarity of per capita GDP for these OECD countries. The findings of this paper have implications for policymaking and econometric modeling for these 24 OECD countries.

Keywords: Volume; Index; of; GDP; per; Capita; Panel; Stationary; Tests; with; Structural; Breaks; OECD; Countries (search for similar items in EconPapers)
JEL-codes: C1 O4 (search for similar items in EconPapers)
Date: 2009-04-14
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P9.pdf (application/pdf)

Related works:
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:ebl:ecbull:eb-09-00021

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().