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Is Per Capita Real GDP Stationary in Latin American Countries? Evidence from a Panel Stationary Test with Structural Breaks

Author

Listed:
  • Tsangyao Chang

    (Department of Finance, Feng Chia University, Taichung, Taiwan)

  • Wen-Chi Liu

    (Department of Business Administration, Da Yeh University, Changhua, Taiwan)

  • Shu-Chen Kang

    (Department of Accounting, Feng Chia University, Taichung, Taiwan)

  • Kuei-Chiu Lee

    (Department of Cooperative Economics, Feng Chia University, Taichung, Taiwan.)

Abstract

In this note, we use the newly-developed and refined panel stationary test with structural breaks, as advanced by Carrion-i-Silvestre et al. (2005), to investigate the time-series properties of per capita real GDP for 20 Latin American countries during the 1960-2000 period. The empirical results from numerous earlier panel-based unit root tests which do not take structural breaks into account indicate that the per capita real GDP for all the countries we study here are non-stationary but when we employ Carrion-i-Silvestre et al.¡¦s (2005) panel stationary test with structural breaks, we find the null hypothesis of stationarity in per capita real GDP can not be rejected for any of the 20 countries.

Suggested Citation

  • Tsangyao Chang & Wen-Chi Liu & Shu-Chen Kang & Kuei-Chiu Lee, 2008. "Is Per Capita Real GDP Stationary in Latin American Countries? Evidence from a Panel Stationary Test with Structural Breaks," Economics Bulletin, AccessEcon, vol. 3(31), pages 1-12.
    • Handle: RePEc:ebl:ecbull:eb-07c30088
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    References listed on IDEAS

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    Keywords

    Per Capita Real GDP Stationary Panel Stationary Test with Structural Breaks;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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