Presence of Persistence in Industrial Production: The Case of India
This paper tests for the presence of persistence in Indian industrial production. Persistence implies the existence of a unit root in the series. We therefore employ the augmented Dickey Fuller test as well as the Phillips Perron test. We also use the Bayesian framework which is superior to the classical procedure. Our results generally support the existence of a unit root thus differing from findings of earlier studies. The existence of persistence in industrial output has important policy implications.
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|Date of creation:||Apr 1999|
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