Does globalization promote real output? Evidence from quantile cointegration regression

Chun-Ping Chang, Chien-Chiang Lee () and Meng-Chi Hsieh

Economic Modelling, 2015, vol. 44, issue C, 25-36

Abstract: This study examines the non-linear cointegration relationship between real output and KOF indices of globalization (overall index and three main sub-indices) by employing the advanced quantile method. Based on using the annual data of G7 countries, our empirical results provide strong evidence that the cointegrating coefficients follow the time-varying process. Our findings imply that most of these long-run relationships are influenced by potential shocks over time rather than maintaining a constant effect consistently. Overall, the contributions of this study not only stress the importance of quantile property in the cointegration models, but also provide the viewpoint of a long-run effect that overall and three-dimension globalizations act as engines of real output.

Keywords: Globalization; Real output; Quantile analysis; Cointegration (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999314003460
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:44:y:2015:i:c:p:25-36

DOI: 10.1016/j.econmod.2014.09.018

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().