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Examining complex unit roots in the MENA countries industrial production indices

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Author Info
Haitham A. Al Zoubi
Aktham Maghyereh

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Abstract

An estimation of complex unit roots is presented based on the standardized periodogram of the Jordanian and Israeli Industrial Production indices over the period 1982--2003. Both indices are found to have six complex cyclical unit roots contents. In contrast, the propagation mechanism rather than impulse tends to drive the business cycles in those economies. Propagation consists of those forces which carry the influences of the shock forward over time and cause deviation from the steady state to be persistent. The periodogram-based cycle duration analysis reveals that both Kitchin and Juglar cycles exist in the Israeli economy. However, no investment cycles are found in the Jordanian economy.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 12 (2005)
Issue (Month): 4 (March)
Pages: 255-259
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Handle: RePEc:taf:apeclt:v:12:y:2005:i:4:p:255-259

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  1. Francis X. Diebold & Glenn D. Rudebusch, 1989. "Forecasting output with the composite leading index: an ex ante analysis," Finance and Economics Discussion Series 90, Board of Governors of the Federal Reserve System (U.S.).
  2. Bierens, Herman J., 2001. "Complex Unit Roots And Business Cycles: Are They Real?," Econometric Theory, Cambridge University Press, vol. 17(05), pages 962-983, October. [Downloadable!]
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  3. Francis X. Diebold & Glenn D. Rudebusch, 1990. "Have postwar economic fluctuations been stabilized?," Discussion Paper / Institute for Empirical Macroeconomics 33, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  4. Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
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  5. Cochrane, John H, 1988. "How Big Is the Random Walk in GNP?," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 893-920, October. [Downloadable!] (restricted)
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