 Understanding regional growth dynamics in Japan: Panel co-integration approach utilizing the PANIC methodMasahiko Shibamoto, Yoshiro Tsutsui () and Chisako Yamane Journal of the Japanese and International Economies, 2016, vol. 40, issue C, 17-30 Abstract: This study proposes a panel co-integration approach using the PANIC method for understanding the regional growth dynamics using non-stationary panel data, and applies it to Japanese prefectures. This approach enables us to analyze both long-run equilibrium growth path and short-run dynamics across the regions. Specifically, we find that there is one common source of growth to which prefectures attach different weights, that the per capita real income of follower-prefectures will catch up to that of leader-prefectures, and that temporal fluctuations of the catch-up process elicited by Barro type regression qualitatively corresponds to short-run dynamics across prefectures by the PANIC method. Keywords: β-convergence; Common trends; Panel unit root test; PANIC method; Japan (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:40:y:2016:i:c:p:17-30 DOI: 10.1016/j.jjie.2016.03.004 Access Statistics for this article Journal of the Japanese and International Economies is currently edited by Takeo Hoshi More articles in Journal of the Japanese and International Economies from Elsevier |
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