The purpose of this study is to investigate the asymptotics of a first order auto regressive unit root process, AR(1). The goal is to determine which tests could be used to test for the presence of a unit root in a first order auto regressive process. A unit root is present when the root of the characteristic equation of this process equals unity. In order to test for the presence of a unit roo...

This study examines the relationship between financial development and economic growth. Thus, this aims to find empirical shreds of evidence for direction causality proxied by domestic credit private sector per capita GDP growth using panel granger test Dumitrescu-Hurlin Test. For purpose, we used a 16 OECD countries from 2008 2019 provide whether supply leading hypothesis or demand following b...

In this article, we introduce the command bsrwalkdrift, which is primarily intended to perform a bootstrap unit-root test under null hypothesis of random walk with drift. The method implemented in considerably more precise than corresponding case conventional augmented Dickey–Fuller test, can be inaccurate when true value drift term small relative standard deviation innovations. also has an opt...

We test Uncovered Interest Parity (UIP) using LIBOR interest rates for a wide range of maturities. In contrast to other markets, LIBOR markets have minimal frictions which could lead to rejecting UIP. Using panel unit root test suggested by Palm, Smeekes, and Urbain (2010) and cointegration techniques by Westerlund (2007), we find that UIP holds for shortterm maturities, when market-specific he...

This paper evaluates whether the exchange rate of Bangladesh is mean reverting or not by applying first-generation and second-generation panel unit root test approaches. The paper considers annual data from 1986 to 2011 of major twenty-two trading partners of Bangladesh. Although some inconclusive outcomes emerge from the first-generation tests, the second-generation test reconciles the controv...

In academic discussions about how to achieve sustainable growth in the world, it is stated that this not possible without spending on research and development innovative activities so countries can maintain their competitiveness global environment. The EU has defined strategies consider innovation as a key element for stimulating creatung employment. context, study examines relationship between...

This study aims to determine the impact of carbon dioxide (CO2) emissions, Gross Domestic Product (GDP), and green innovation on renewable energy (RE) supply (RES) by taking panel heterogeneity cross-section dependence into account. The dataset this covers a BRICS countries (fragile five) Turkey from 2000 2017. Based dependency, tests we have applied are CIPS unit root test, Gengenbach, Urbain...

A number of studies have estimated the income elasticity of health care expenditure to identify whether health care is a necessary or luxury product. However, the issue has received less attention in developing countries, especially in Asian economies. The current study for the first time has used the panel data covering 36 Asian countries for the period 1995-2013 for revealing the nature of he...

The unit root tests based on the robust estimator for the first-order autoregressive process are proposed and compared with the unit root tests based on the ordinary least squares (OLS) estimator. The percentiles of the null distributions of the unit root test are also reported. The empirical probabilities of Type I error and powers of the unit root tests are estimated via Monte Carlo simulatio...