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Is volume index of gdp per capita stationary in oecd countries? panel stationary tests with structural breaks

Author

Listed:
  • Tsangyao Chang

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

  • Gengnan Chiang

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

  • Yichun Zhang

    (Institute of Finance, Xiamen University)

Abstract

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.

Suggested Citation

  • Tsangyao Chang & Gengnan Chiang & Yichun Zhang, 2009. "Is volume index of gdp per capita stationary in oecd countries? panel stationary tests with structural breaks," Economics Bulletin, AccessEcon, vol. 29(2), pages 588-598.
    • Handle: RePEc:ebl:ecbull:eb-09-00021
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    References listed on IDEAS

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    More about this item

    Keywords

    Volume Index of GDP per Capita Panel Stationary Tests with Structural Breaks OECD Countries;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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