Understanding Regional Growth Dynamics in JAPAN: Panel Cointegration Approach Utilizing The PANIC Method

Masahiko Shibamoto, Yoshiro Tsutsui () and Chisako Yamane

No 243, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This study proposes a panel cointegration approach using the PANIC method for understanding the regional growth dynamics using nonstationary 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 leaderprefectures, 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)
JEL-codes: C22 C23 O40 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009-09, Revised 2016-03
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (5)

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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp243.pdf Revised version, 2016 (application/pdf)

Related works:
Journal Article: Understanding regional growth dynamics in Japan: Panel co-integration approach utilizing the PANIC method (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:243

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