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Is per capita real GDP stationary in China? Sequential panel selection method

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  • Lee, Kuei-Chiu

Abstract

This paper investigates the time-series properties of per capita real GDP in China. The Sequential Panel Selection Method (SPSM) using the Panel KSS test with a Fourier function, a novel approach to panel unit testing, is applied to the data on 31 Chinese provinces over the period of 1979 to 2009. The SPSM classifies the whole panel into the group of stationary and non-stationary series, which identifies how many and which series are characterized by stationary processes. The results indicate that the per capita real GDP are non-stationary in all of these 31 regions in China, providing important policy implications.

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  • Lee, Kuei-Chiu, 2014. "Is per capita real GDP stationary in China? Sequential panel selection method," Economic Modelling, Elsevier, vol. 37(C), pages 507-517.
    • Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:507-517
    DOI: 10.1016/j.econmod.2013.11.040
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    2. Xi, Xun & Xi, Baoxing & Miao, Chenglin & Yu, Rongjian & Xie, Jie & Xiang, Rong & Hu, Feng, 2022. "Factors influencing technological innovation efficiency in the Chinese video game industry: Applying the meta-frontier approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    3. Xolisa Vayi & Andrew Phiri, 2018. "A sequential panel selection approach to cointegration analysis: An application to Wagner’s law for South Africa," Working Papers 1831, Department of Economics, Nelson Mandela University.
    4. Xolisa Vayi & Andrew Phiri, 2018. "A Sequential Panel Selection Approach to Cointegration Analysis: An Application to Wagner’s Law for South African Provincial Data," Economic Research Guardian, Weissberg Publishing, vol. 8(1), pages 25-39, June.

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    More about this item

    Keywords

    Per capita real GDP; Sequential panel selection method; Panel KSS unit root test; Fourier function; Policy implications; China;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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