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| Tsangyao Chang, Gengnan Chiang and Yichun Zhang |
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| ''Is volume index of gdp per capita stationary in oecd countries? panel stationary tests with structural breaks'' |
| ( 2009, Vol. 29 No.2 ) |
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| 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.
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| Keywords: Volume Index of GDP per Capita Panel Stationary Tests with Structural Breaks OECD Countries |
JEL: C1 - Econometric and Statistical Methods: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Jan 29 2009 | | Manuscript Accepted : Apr 14 2009 |
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