This paper investigates the causal relationship between non-oil international trade and the GDP in a panel of 11 selected oil exporting countries by using panel unit root tests and panel ...cointegration analysis. A three-variable model is formulated with oil revenues as the third variable. The results show a strong causality from oil revenues and economic growth to trade in the oil exporting countries. Yet, non-oil trade does not have any significant effects on GDP in short- and long-run. It means that it is the oil and GDP that drives the trade in mentioned countries, not vice versa. According to the results, decision makings should be employed to achieve sustainable growth through higher productivity and substantially enlarging the economic base diversification in the future.
We ask whether failure to control for research and development (R&D) activity in an output convergence regression affects the coefficient estimates of initial output. We focus on output convergence ...to an economy¡¯s own steady-state growth path using time series regression framework and convergence across economies using panel estimation. We use data for the 30 member countries of the Organization for Economic Co-operation and Development (OECD) and US state-level real per capita output and per capita patents. The results indicate that after controlling for R&D activity the coefficient estimates increase in magnitude (in absolute terms) and in significance levels. Furthermore, the results are not sensitive to the dataset used or the estimation procedure.
This paper introduces two different non-parametric tests for panel unit root based on the wavelet decomposition of time series which may be used in the presence of cross-sectional dependency and an ...unknown structural break in the data. These tests are compared with the parametric IPS test proposed by Im, Pesaran and Shin (1997) and the Wald test suggested by Taylor and Sarno (1998). By means of Monte Carlo simulations, the results shown that the size and power properties of the new non-parametric tests are robust to cross sectional dependency of the error terms. Furthermore, it is shown that the tests may be used when the time series has an unknown structural break. These tests have also shown to have high power against the alternative hypothesis under the above mentioned conditioned, whiles the IPS and the Wald did not have any power to reject the alternative hypothesis in the presence of structural break in the data.
In this paper, different tests of unit root in panel data are implemented for studying real economic convergence and catching-up in ten new members of European Union (EU) toward average EU per capita ...income and average of ancient members. We used the EuroStat quarterly real per capita output data on the period 1995 - 2005. The results support existence of absolute convergence and catching-up processes in sample countries towards EU standards.
This paper empirically analyzes the long-run equilibrium between trade balances and the terms of trade using the nonstationary panel data analysis. Empirical results indicate that trade balances and ...the terms of trade do not have cointegrating relation for G-7 countries. This implies that the deterioration in the terms of trade will not necessarily improve a country's trade balance in the long-run.
After the collapse of Bretton-Woods system, it was believed that under flexible exchange rate system nominal exchange rate will adjust instantaneously to reflect movements in prices between two ...countries. Consequently, Purchasing Power Parity (PPP) will hold continuously. This study examines the validity of long-run PPP hypothesis for two panels of OECD and developing Asian countries. The results of the study suggest that the PPP hypothesis with its strict symmetry and proportionality condition does not hold in the post-Bretton Woods era. However, when the strict PPP conditions are relaxed, we find a cointegrating relationship between nominal exchange rate and prices, which in turn provides support for the weak form of PPP.
The aim of this paper is to investigate whether price dynamics is homogeneous across the Eurozone countries. Relying on monthly data over the January 1970-July 2011 period, we test for the absolute ...purchasing power parity (PPP) hypothesis through the implementation of second-generation panel unit root and cointegration tests. Our results show that price dynamics are heterogeneous depending on both the time period and the considered group of countries. More specifically, while PPP is validated for the core EMU countries, this hypothesis does not hold for Northern peripheral economies. Turning to the Southern countries, PPP is observed only before the launch of the euro.
How to realize the low-carbon economy has drawn great attention of our government in recent years. This paper will base on the nature of the low-carbon economy to construct a metric model by ...analyzing 28 Chinese provincial administrative units' panel data which are from 1999 to 2009. The finding proves that there really exists a long-term balanced relationship between carbon productivity, economy and population; GDP and carbon productivity prove the positive relation, while population and carbon productivity prove the negative one. The basic carbon productivity differs relatively one province from another in China, especially from variable regions. Basing on the conclusion of all the findings, the author will present three policy suggestions :first, the provinces should make full use of their self advantages to develop the economy, so as to improve the carbon productivity depending on the economic increase; second, the provinces which are abound in natural resources should actively push forward the transformation of the industrial structure; third, we should further stabilize the achievements of the birth control policy, and then reduce the life carbon consumption.
This paper firstly reviews the research situation at home and abroad, utilizes production functions of two sectors to establish empirical analysis model based on FDI and relevant theories, uses ...multiple test methods such as panel unit root and panel co-integration comprehensively to carry out empirical tests on the data, makes regression estimates based on co-integration, quantifies employment effects of FDI in Jiangxi Province among three industries. It is concluded that under the impact of FDI, the number of employees of primary industry in Jiangxi Province is decreasing, the number of employees of secondary and tertiary industry are increasing, and especially tertiary industry is absorbing labor at an accelerated rate.
