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Are output fluctuations transitory or permanent in Ghana?

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  • Yeboah Asuamah, Samuel

Abstract

The paper examines the stationarity properties of output for Ghana during the period 1970-2011. Using the Dickey-Fuller ADF test and the Kwiatkwski, Phillips, Schmidt and shin (KPSS) test on a single time series, it is found that output series have unit root or are nonstationary in levels. The policy implication suggests that the effect of shock on output will be temporary and not have a long memory effect for output. Future studies should use other unit root model such as Phillips-Perron (PP) test and panel unit root test to test whether the findings will be collaborated.

Suggested Citation

  • Yeboah Asuamah, Samuel, 2016. "Are output fluctuations transitory or permanent in Ghana?," MPRA Paper 70270, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:70270
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    File URL: https://mpra.ub.uni-muenchen.de/70270/1/MPRA_paper_70270.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Unit root; economic growth; Augmented Dickey-Fuller (ADF);

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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