1. Are shocks to national income persistent? New global evidence.
- Author
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Narayan, Seema and Narayan, Paresh Kumar
- Subjects
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NATIONAL income , *ECONOMIC research , *GROSS domestic product , *ECONOMIC indicators , *ECONOMETRICS ,DEVELOPING countries - Abstract
Purpose – This paper aims to investigate the integrational properties of real GDP for 125 countries. Design/methodology/approach – The paper applies the Kwiatkowski et al. univariate test and a KPSS-type univariate test that accounts for multiple structural breaks – a test procedure proposed by Carrion-i-Silvestre et al. The panel versions of the KPSS-type test, proposed by Carrion-i-Silvestre et al. with and without structural breaks, are also applied. Findings – The paper finds that, while univariate tests with and without structural breaks provide mixed results on persistence, the panel test suggests that shocks to national output are persistent. Originality/value – This is a multi-country study that focuses on both developed and developing countries and uses more recent data to provide new and comparable evidence on the persistence of output. [ABSTRACT FROM AUTHOR]
- Published
- 2011
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