Using panel cointegration techniques, we show a cointegrating relationship exists between capital and productivity in 446 manufacturing industries. Panel DOLS and FMOLS estimates reveal that innovations to productivity increase and Granger cause capital movements.  2000 Elsevier Science S.A. All rights reserved.

The objective of the study is to examine the long-run relationship between political instability, terrorism and tourism in selected SAARC countries over a period of 1995 to 2012. For this purpose, different panel techniques has been used for robust analysis i.e., panel unit root test for stationary process, panel cointegration test for long-run relationship, panel dynamic ordinary least squares...

Using recently developed panel unit root and panel cointegration tests and the FullyModified OLS (FMOLS) methodology, this paper estimates the impact of remittances on the economic growth of selected upper and lower income Latin American & Caribbean countries. Despite a large flow of remittances to the region, there have been relatively few empirical studies assessing the impact of remittances ...

This paper employs recently developed techniques for testing hypotheses in cointegrated panels to test the strong version of purchasing power parity for a panel of post Bretton Woods data. We compare results using fully modiŽ ed and dynamic OLS approaches , and strongly reject the hypothesis . We also introduce a new between-dimensio n dynamic OLS estimator and Ž nd that the between-dimensio n ...

Relative population growth affects relative prices through the so-called BalassaSamuelson (BS) mechanism and that in turn impacts PPP. This paper empirically investigates the relationship between PPP exchange rate and relative population growth in a panel of 80 selected countries. Following the Balassa-Samuelson hypothesis this paper argues that relative population growth affects nominal wages ...