IngentaConnect Is per capita real GDP stationary in African countries? Evidence ...

Authors: Chang, Tsangyao¹; Chang, Hsu-Ling²; Chu, Hsiao-Ping³; Su, Chi-Wei⁴

Source: Applied Economics Letters, Volume 13, Number 15, 15 December 2006 , pp. 1003-1008(6)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

This note uses the newly developed panel SURADF tests advanced by Breuer et al. (2001) to investigate the time-series properties of real GDP for 47 African countries for the period 1980 to 2004. While the other Panel-based unit root tests are joint tests of a unit root for all members of the panel and are incapable of determining the mix of I(0) and I(1) series in the panel setting, the Panel SURADF tests a separate unit-root null hypothesis for each individual panel member and, therefore identifies how many and which series in the panel are stationary processes. The empirical results from several panel-based unit root tests indicate that the per capita real GDP for all the countries studied are non-stationary, however, when Breuer et al.'s Panel SURADF tests are conducted, one finds unit root in per capita real GDP only exist in two-third of countries studied. These results have important policy implications for African countries.

Document Type: Research article

DOI: 10.1080/13504850500425881

Affiliations: 1: Department of Finance, Feng Chia University, Taichung, Taiwan 2: Department of Accounting and Information Technology, Ling Tung University, Taichung, Taiwan 3: Department of Business Administration, Ling Tung University, Taichung, Taiwan 4: Department of Finance, Providence University, Taichung, Taiwan

Is per capita real GDP stationary in African countries? Evidence from panel SURADF test