Unemployment hysteresis in Middle East and North Africa countries: panel SUR-based unit root test with a Fourier function

Unemployment hysteresis of Middle East and North African (MENA) countries is investigated under a battery unit root testing frameworks in the extant literature, including recently proposed Panel SUR Dickey-Fuller-like test with Fourier Exponential Smooth Transition Regression (ESTR) nonlinearities. The function allows for smooth nonlinear breaks, while ESTR nonlinearity instantaneous breaks. two types make recent approach quite appealing. It has, however, been scarcely applied to empirically unemployment hypothesis. Although we find conflicting stances from ADF, FADF ADF-SB frameworks, evidence effect Lebanon consistent across all three tests. ADF tests confirmed hypothesis Kuwait Lebanon, FADF-SB rejected 19 MENA countries. results KSS FKSS consistently affirmed Oman Turkey, there are mixed Lebanon. SURADF SURKSS only supported same was Bahrain SURFADF SURFKSS frameworks. 12 (about 63.15% total number considered) economies.