IDEAS home Printed from https://ideas.repec.org/a/cup/polals/v22y2014i02p258-273_01.html
   My bibliography  Save this article

Dynamic Panel Analysis under Cross-Sectional Dependence

Author

Listed:
  • Gaibulloev, Khusrav
  • Sandler, Todd
  • Sul, Donggyu

Abstract

This article investigates inconsistency and invalid statistical inference that often characterize dynamic panel analysis in international political economy. These econometric concerns are tied to Nickell bias and cross-sectional dependence. First, we discuss how to avoid Nickell bias in dynamic panels. Second, we put forward factor-augmented dynamic panel regression as a means for addressing cross-sectional dependence. As a specific application, we use our methods for an analysis of the impact of terrorism on economic growth. Different terrorism variables are shown to have no influence on economic growth for five regional samples when Nickell bias and cross-dependence are taken into account. Our finding about terrorism and growth is contrary to the extant literature.

Suggested Citation

  • Gaibulloev, Khusrav & Sandler, Todd & Sul, Donggyu, 2014. "Dynamic Panel Analysis under Cross-Sectional Dependence," Political Analysis, Cambridge University Press, vol. 22(2), pages 258-273, April.
    • Handle: RePEc:cup:polals:v:22:y:2014:i:02:p:258-273_01
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1047198700013723/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:polals:v:22:y:2014:i:02:p:258-273_01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/pan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.