Trade and regional growth in Spain: panel cointegration in a small sample
AbstractIn this article, we test for the existence of a relationship between per capita Gross Domestic Product (GDP) and trade, for 15 Spanish Autonomous Communities between 1988 and 2004, using a panel cointegration methodology. In particular, we implement several panel unit root tests (Maddala and Wu, 1999; Levin et�al ., 2002; Im et�al ., 2003) and panel cointegration tests (Pedroni, 1999, 2004), with a special attention to their behaviour in a small sample. We also develop a Seemingly Unrelated Regression Estimation (SURE) residual based test, in order to explicitly take into account the cross regional correlation pattern. Appropriate confidence intervals are estimated with a sieve bootstrap designed for our small time sample, preserving the dependence structure among cross sectional units. Our cointegration tests reject the existence of a significant relationship between GDP per capita and exports. However, we do find some evidence of a significant relationship between GDP per capita and imports or with total trade.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 44 (2012)
Issue (Month): 4 (February)
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- Marta Simões & João Andrade & Adelaide Duarte, 2013.
"A regional perspective on inequality and growth in Portugal using panel cointegration analysis,"
International Economics and Economic Policy,
Springer, vol. 10(3), pages 427-451, September.
- Marta Simões & João Sousa Andrade & Adelaide Duarte, 2013. "A Regional Perspective on Inequality and Growth in Portugal Using Panel Cointegration Analysis," GEMF Working Papers 2013-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
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