Which OIC countries are catching up? Time Series Evidences with Multiple Structural Breaks

which oic countries are catching up? time series evidences with multiple structural breaks

abstract in this paper, income per capita convergence hypothesis is tested in selected oic countries. for this purpose, we use the time series model and univariate kpss stationary test with multiple structural breaks (carrion-i-silvestre et al. (2005)) over the period 1950-2008. the results show that most oic countries could not catch up toward usa. although because of some positive term of tra...

Which Countries are Catching up? New Evidences Using Flexible Fourier Stationary Test

In this paper, we tested the catching-up hypothesis toward the USA using Becker et al. (2006) flexible Fourier KPSS stationary test over the period 1960-2009. The mentioned test could control for unknown number and form of structural breaks using a selected frequency component of a Fourier function. Our results show almost poor countries stay poor and almost rich countries stay rich. South Kore...

which countries' income gap is about decrease? new evidences from panel unit root tests with multiple endogenous structural breaks

in this paper, we analyze the dynamics of income gap between 138 countries with usa by using time series model of convergence hypothesis and various panel unit root tests over period 1950-2008. all panel unit root tests don’t reject the null hypothesis of unit root. univariate unit root tests results show that gdp per capita of south korea, switzerland, austria, lesoto and hungry catch up with ...

Are incomes converging among OECD countries? Time series evidence with two structural breaks

Time series from fifteen OECD countries for the period 1870–1994 are examined to determine if per capita incomes are stochastically converging. To perform our tests, we utilize a minimum Lagrange multiplier unit root test that endogenously determines two structural breaks in level and trend. In contrast to other tests, our test is not subject to rejections of the null in the presence of a unit ...

Are Eastern European Countries Catching Up? Time Series Evidence for Czech Republic, Hungary, and Poland

The catching up process in Czech Republic, Hungary, and Poland is analyzed by investigating the integration properties of log-differences in per-capita GDP versus the EU15 and a Mediterranean country group. We account for structural changes by using unit root tests that allow for two endogenous breaks in the level and the trend. We find that Czech Republic and Hungary are stochastically converg...

Purchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks