IDEAS home Printed from https://ideas.repec.org/a/wei/journl/v8y2018i1p25-39.html

A Sequential Panel Selection Approach to Cointegration Analysis: An Application to Wagner’s Law for South African Provincial Data

Author

Listed:
  • Xolisa Vayi

    (Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa)

  • Andrew Phiri

    (Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa)

Abstract

The main aim of this study is to extend the recently introduced sequential panel selection method (SPSM) to a cointegration framework which is particularly used to investigate Wagner’s law for 9 South African provinces. We particularly apply the SPSM to the PMG and ARDL cointegration frameworks which we apply to annual data spanning from 2001 to 2016. The main findings show that when applying single country/region estimates we fail to find evidence of cointegration whereas within panel regressions, cointegration effects are present for theentire dataset. In further applying the SPSM we observed significant Wagner’s effects for panels inclusive of Gauteng, Eastern Cape and Kwazulu-Natal provinces and when these provinces are excluded from the panels, cointegration effects are unobserved.

Suggested Citation

  • 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, Mutascu Publishing, vol. 8(1), pages 25-39, June.
    • Handle: RePEc:wei:journl:v:8:y:2018:i:1:p:25-39
    as

    Download full text from publisher

    File URL: http://www.ecrg.ro/files/p2018.8(1)7y3.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    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
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

    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:wei:journl:v:8:y:2018:i:1:p:25-39. 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: Mihai Mutascu (email available below). General contact details of provider: .

    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.