Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test

The stability of macroeconomic variables and whether the impact a shock on these is permanent or temporary important for policy-makers researchers. As an indicator growth prosperity, gross domestic product (GDP) among variables. After all, due to advantages current panel data analysis techniques over conventional methods, it use aforementioned methods in analyzing existence unit-root GDP. Accordingly, aim this study investigate per capita real GDP G-7 countries followed stationary process between 1970-2019 with stronger test (BCIPS) that takes into consideration cross-section dependence, multi-factor structure, structural changes. Empirical results reveal has structure. In context, been determined countries, therefore, by means monetary fiscal policy instruments, not necessary intervene fluctuations occurring output level.