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| Jean françois Hoarau, Claude Lopez and Michel Paul |
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| ''Short Note on the Unemployment Rate of the “French overseas regions”'' |
| ( 2010, Vol. 30 No.3 ) |
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| This article analyzes the hysteresis hypothesis in the unemployment rates of the four “French overseas regions” (Guadeloupe, Martinique, Guyana, Reunion) [FORs] over the period 1993-2008. We use standard univariate and panel unit root tests, among them Choi (2006) and Lopez (2009) that account for cross-sectional dependence and have improved performance when the number of countries and the time dimension of the data are limited. Our results cannot reject the null hypothesis of a unit root and so find evidence supporting hysteresis in the unemployment rates for the FORs. |
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| Keywords: Hysteresis, Unemployment, Panel unit root test, cross-section dependence, convergence |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
C2 - Single Equation Models; Single Variables: General |
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| Manuscript Received : May 03 2010 | | Manuscript Accepted : Sep 02 2010 |
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