This paper presents the nonlinear IV methodology as an effective inferential basis for nonstationary panels. The nonlinear IV method resolves the inferential difficulties in testing for unit roots arising from the intrinsic heterogeneities and cross-dependencies of panel models. Individual units are allowed to be dependent through correlations among innovations, interrelatedness of short-run dy...

The base currency effect in the purchasing power parity (PPP) literature refers to the stylized fact that tests on German mark real exchange rates are more likely to support mean reversion than analogous tests on US dollar rates. Using a panel of 19 OECD currencies, 1973-1997, we employ different panel unit root approaches to investigate the view that this effect can be attributed to neglected ...

skilled labor force is very important in economic growth. workers become skilled when they are healthy and able to be educated and work. in this study, we estimated the effects of health indicators on labor supply. we used labor force participation rate as the indicator of labor supply. we categorized this indicator into 2 indicators of female and male labor force participation rates and compar...

An IV approach, using as instruments nonlinear transformations of the lagged levels, is explored to test for unit roots in panels with general dependency and heterogeneity across cross-sectional units. We allow not only for the cross-sectional dependencies of innovations, but also for the presence of cointegration across cross-sectional levels. Unbalanced panels and panels with differing indivi...

This paper proposes a bootstrap artificial neural network based panel unit root test in a dynamic heterogeneous panel context. An application to a panel of bilateral real exchange rate series with the US Dollar from the 20 major OECD countries is provided to investigate the Purchase Power Parity (PPP). The combination of neural network and bootstrapping significantly changes the findings of the...

Considering the fact that savings are very important for developing countries and they should be increased, in this study, effects of macroeconomic variables consisting economic growth rate, inflation real interest rate per capita income on private BRICS-T countries, have been examined with annual data 1996-2019 period. For purpose, firstly, cross-sectional dependency homogeneity situations bet...

Time series econometric methods are frequently used in studies examining how external debt affects economic growth. For the period of 1980-2020, this study creates a panel dataset five South Asian nations and examines link between The findings Cross-sectionally Augmented Panel Unit Root Test by Pesaran's (2007) confirms that all variables integrated order I (1). To understand error correction m...