Short Note on the Unemployment Rate of the “French overseas regions”
AbstractThis article analyzes the hysteresis hypothesis in the unemployment rates of the four “French overseas regions” (Guadeloupe, Martinique, Guyana, Reunion) [FORs] over the period 1993-2008. We use standard univariate and panel unit root tests, among them Choi (2006) and Lopez (2009) that account for cross-sectional dependence and have improved performance when the number of countries and the time dimension of the data are limited. Our results cannot reject the null hypothesis of a unit root and so find evidence supporting hysteresis in the unemployment rates for the FORs.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 3 ()
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Hysteresis; Unemployment; Panel unit root test; cross-section dependence; convergence;
Other versions of this item:
- Jean-François HOARAU & Claude Lopez & Michel PAUL, 2009. "Short Note on the Unemployment Rate of the French Overseas Regions," University of Cincinnati, Economics Working Papers Series 2009-3, University of Cincinnati, Department of Economics.
- Hoarau, J-F. & Lopez, C. & Paul, M., 2011. "Short Note on the Unemployment Rate of the French Overseas Regions," Working papers 337, Banque de France.
- E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
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