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Is Per Capita Real GDP Stationary in Latin American Countries? Evidence from a Panel Stationary Test with Structural Breaks

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  • Tsangyao Chang

    () (Department of Finance, Feng Chia University, Taichung, Taiwan)

  • Wen-Chi Liu

    () (Department of Business Administration, Da Yeh University, Changhua, Taiwan)

  • Shu-Chen Kang

    () (Department of Accounting, Feng Chia University, Taichung, Taiwan)

  • Kuei-Chiu Lee

    () (Department of Cooperative Economics, Feng Chia University, Taichung, Taiwan.)

Abstract

In this note, we use the newly-developed and refined panel stationary test with structural breaks, as advanced by Carrion-i-Silvestre et al. (2005), to investigate the time-series properties of per capita real GDP for 20 Latin American countries during the 1960-2000 period. The empirical results from numerous earlier panel-based unit root tests which do not take structural breaks into account indicate that the per capita real GDP for all the countries we study here are non-stationary but when we employ Carrion-i-Silvestre et al.¡¦s (2005) panel stationary test with structural breaks, we find the null hypothesis of stationarity in per capita real GDP can not be rejected for any of the 20 countries.

Suggested Citation

  • Tsangyao Chang & Wen-Chi Liu & Shu-Chen Kang & Kuei-Chiu Lee, 2008. "Is Per Capita Real GDP Stationary in Latin American Countries? Evidence from a Panel Stationary Test with Structural Breaks," Economics Bulletin, AccessEcon, vol. 3(31), pages 1-12.
  • Handle: RePEc:ebl:ecbull:eb-07c30088
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    Cited by:

    1. Vasudeva N. R. Murthy & Emmanuel Anoruo, 2009. "Are Per Capita Real GDP Series in African Countries Non-stationary or Non-linear? What does Empirical Evidence Reveal?," Economics Bulletin, AccessEcon, vol. 29(4), pages 2492-2504.
    2. repec:eee:energy:v:147:y:2018:i:c:p:110-121 is not listed on IDEAS
    3. Pandey, Alok Kumar & Dixit, Annapurna, 2011. "Inequality, Decomposition of Inequality and Stationarity of State Domestic Product: An Empirical Evidence from Twenty Indian States," MPRA Paper 54237, University Library of Munich, Germany.
    4. Tsangyao Chang & Chia-Hao Lee & Pei-I Chou, 2012. "Is per capita real GDP stationary in five southeastern European countries? Fourier unit root test," Empirical Economics, Springer, vol. 43(3), pages 1073-1082, December.

    More about this item

    Keywords

    Per Capita Real GDP Stationary Panel Stationary Test with Structural Breaks;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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