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Are Per Capita Real GDP Series in African Countries Non-stationary or Non-linear? What does Empirical Evidence Reveal?

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  • Vasudeva N. R. Murthy

    ()
    (College of Business Administration, Creighton University)

  • Emmanuel Anoruo

    ()
    (Coppin State University)

Abstract

This paper extends the applied time series literature in economic development, by testing whether the per capita real GDP time series in 27 African countries are non-stationary or non-linear and globally stationary over the relatively long period from 1960 to 2007. Using the non- linear unit root tests developed recently by Kapetanios, Shin and Snell (2003) the results show that in one-third of the countries, the series are stationary with non-linear mean reversion. Policy implications are indicated.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P2.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 4 ()
Pages: 2492-2504

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Handle: RePEc:ebl:ecbull:eb-09-00482

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Related research

Keywords: Mean reversion; non-linear unit root tests; GDP per capita;

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References

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  1. Lucio Sarno & Mark P. Taylor, . "Real Exchange Rates under the Recent Float: Unequivocal Evidence of Mean Reversion," Economics and Finance Discussion Papers, Economics and Finance Section, School of Social Sciences, Brunel University 97-14, Economics and Finance Section, School of Social Sciences, Brunel University.
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  15. Georgios Chortareas & George Kapetanios & Merih Uctum, 2008. "Nonlinear Alternatives to Unit Root Tests and Public Finances Sustainability: Some Evidence from Latin American and Caribbean Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 70(5), pages 645-663, October.
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Cited by:
  1. Tiwari, Aviral & Shahbaz, Muhammad & Shabbir, Muhammad, 2011. "Is per capita GDP non-linear stationary in SAARC countries?," MPRA Paper 29109, University Library of Munich, Germany.
  2. Chang, Tsangyao & Chu, Hsiao-Ping & Ranjbar, Omid, 2014. "Are GDP fluctuations transitory or permanent in African countries? Sequential Panel Selection Method," International Review of Economics & Finance, Elsevier, Elsevier, vol. 29(C), pages 380-399.
  3. Lyócsa, Štefan & Výrost, Tomáš & Baumöhl, Eduard, 2011. "Unit-root and stationarity testing with empirical application on industrial production of CEE-4 countries," MPRA Paper 29648, University Library of Munich, Germany.
  4. K. Suresh & Aviral Tiwari, 2013. "Are Shocks to Real Output Permanent or Transitory? Evidence from a Panel of “Asean” Per Capita GDP Data," Transition Studies Review, Springer, Springer, vol. 20(2), pages 149-157, October.

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