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In this paper; a theoretical relationship between IPRs and import is tried to be find. For this, A data set was created. This data set includes 20 countries data between 1996-2012 dates. Using that data in panel data analysis, the relationship between IPRs and Import will be found. In this study; indicator of IPRs is patent applications. There is an assumption that is patent applications have a meaningful effect on import. In this context, objective of the study; Inspection of a cointegration relationship between foreign patent applications and import of developing countries. Results of analysis tell us there are not any cointegreation between import and IPRs for developing countries. Neither long nor short run relationship could be found. [ABSTRACT FROM AUTHOR]

This paper investigates the spot electricity price discovery that exists among the five regions of Indian electricity market using hourly spot electricity price data from 1st January 2014 to 31st December 2015. Using Augmented Dickey-Fuller (1981) and Narayan and Popp (2010) unit root tests, we find that the spot electricity prices for both peak and off-peak hours across all the regions are stationary at level. Then by applying Granger causality test for a reduced VAR model at level, the results show that there hardly any causality exists between these electricity markets barring few regions. Though we did not find any causality between peak price and off-peak price for all individual region, but we formed two panels by using peak and off-peak price data of all five regions. Our results showed short-run and long-run panel Granger causality between peak price and off-peak price. The results of the study suggests that though India as a nation has all the regions inter-connected with single frequency of Power grid operation since 2008, however, these markets are not highly integrated in comparison to electricity markets of developed nations around the world. [ABSTRACT FROM AUTHOR]

This article examines the conditional income convergence hypothesis for 17 major states in India for the period of 1960–2012. Univariate stationarity tests without structural breaks provide evidence against the convergence hypothesis. However, when two or more structural breaks are applied in per capita income series, the incomes of around 11–13 states are found to stochastically converge to the national average. This finding supports the convergence hypothesis for the panel as a whole after accounting for two data features, cross-sectional dependence and structural breaks in incomes, using a unified panel stationarity testing framework. [ABSTRACT FROM PUBLISHER]

We examine the impact of export diversification on total factor productivity (TFP) growth in case of 28 emerging market economies (EMEs) using annual data from 1995 to 2014. The results indicate that export diversification has significant positive impact on TFP growth. Further the results show that the TFP growth contributes more towards output growth as compared to factor accumulation in case of highly export diversified countries. The policy suggests that the emerging countries should focus more on export diversification-led-growth via productivity channel. [ABSTRACT FROM AUTHOR]

We investigate the impact of an uncertain number of false individual null hypotheses on commonly used p value combination methods. Under such uncertainty, these methods perform quite differently and often yield conflicting results. Consequently, we develop a combination of 'combinations of p values' (CCP) test aimed at maintaining good power properties across such uncertainty. The CCP test is based on a simple union-intersection principle that exploits the weak correspondence between two underlying p value combination methods. Monte Carlo simulations show that the CCP test controls size and closely tracks the power of the best individual methods. We empirically apply the CCP test to explore the stationarity in real exchange rates and the information rigidity in inflation and output growth forecasts. [ABSTRACT FROM AUTHOR]

Copyright of Research Journal of Politics, Economics & Management / Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi is the property of Research Journal of Politics, Economics & Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Abant İzzet Baysal Üniversitesi Journal of Social Sciences / Sosyal Bilimler Enstitüsü Dergisi is the property of Journal of Abant Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article discusses a study that examined the stochastic behavior of real interest rates as to the presence of nolinear, cross sectional or structural breaks. Topics include econometric analysis using the consumption-based asset pricing models (CAPM) and the real interest rate parity hypothesis (RIPH) on reverting dynamics of variables. Results showed reversion of interest rates as to real interest rates in Organisation for Economic Co-operation and Development (OECD) member-countries.

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 health care as a product. Along with conventional econometric techniques we have addressed the issue of cross section dependence and used Westerlund (2007) panel cointegration test which is robust against cross section dependence and heterogeneity for detecting the presence of panel cointegration. By applying Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) it was found that the long run elasticity of Health Care Expenditure (HCE) with Gross Domestic Product (GDP) is less than unit implying that the health care can be regarded as necessary in nature for these countries. [ABSTRACT FROM AUTHOR]

In this article, an exact factor model is considered, and a Lagrange multiplier-type test is derived for a homogeneous unit root in the idiosyncratic component. It is shown that under sequential asymptotics, its null limiting distribution is standard normal, regardless of whether the factors are integrated, cointegrated or stationary. In a simulation study, the size and local power of the Lagrange multiplier-type test and some popular non-likelihood-based tests are compared. The simulation results show that the Lagrange multiplier-type test has the highest local power as the panel dimensions tend to infinity, with the actual size tending to the nominal size. [ABSTRACT FROM AUTHOR]

This paper examines the long-run equilibrium between real house prices and macroeconomic fundamentals in U.S. housing markets, as well as the short-run adjustment of real house prices back to the equilibrium. Pooled mean-group and mean-group estimation techniques developed by Pesaran and Smith (1995) and Pesaran et al. (1999) are applied to a panel of the 51 U.S. states over the period of 1976Q3 to 2012Q4. Our results suggest a common long-run relationship over the sample period between real house prices and their economic fundamental determinants in the 51 U.S. states. However, the speed of adjustment of real house prices varies vastly across states, with a half-life estimate of 22 quarters on average, and the deviations of real house prices from the equilibrium range from -30% to 46% across states over time. [ABSTRACT FROM AUTHOR]

The FDI of Multinational Companies (MNCs) can be export-oriented or market-oriented, intended to capture the international or local markets respectively. Since the MNCs have better export performance than local firms, in case of export-oriented FDI, this would lead local firms to mimic foreign firms in the same way. On the other hand, the reverse causality running from exports to FDI can also exist. It is argued that FDI is attracted to countries with a higher trade potential both in terms of imports and exports. This paper investigates the causal relationship between Foreign Direct Investment (FDI) and exports in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results show a strong causality from exports to FDI in these countries. Moreover, FDI does have significant effects on export in short- and long-run. So, the findings imply bidirectional causality between foreign direct investment and export in these countries.

This paper investigates the relationship between government spending and economic growth. Economictheory generally expects a negative relationship between these variables for rich countries with large public sectors.However, empirical studies often cannot find a robust negative relationship and have provided mixed empiricalevidence. In the case of the relationship between public expenditure and economic growth it appears thatspecification of econometric methods, data selection and time span could affect the findings and lead to contradictoryconclusions. This paper utilizes a panel of cross-sectional and time series data for 16 OECD countries over the 1995-2010 periods to reexamine the relationship between government spending and economic growth by conductingeconometric panel study. We investigate the unit root properties and cointegration, long-run economic relationship,between government expenditure and economic growth to test the validity of Wagner’s Law. Our findings indicate thatgovernment spending exerts a positive and significant influence on economic growth and provide evidence for thevalidity of Wagner’s law.

In this paper, different tests of unit root in panel data are implemented for studying real economic convergence and catching-up in ten new members of European Union (EU) toward average EU per capita income and average of ancient members. We used the "EuroStat" quarterly real per capita output data on the period 1995 - 2005. The results support existence of absolute convergence and catching-up processes in sample countries towards EU standards. .

Countries in the Middle East and Africa (MEA) have diverse economic structures. Some countries are oil exporters, some are oil importers and some countries are very poor, dependent on agriculture. Since current account is an important indicator of an economy’s health, it is of interest to examine if current account balances in MEA region are sustainable. However, empirical research paid scant attention to this issue. No study has been conducted before to examine this issue. The present paper makes an attempt to fill this research gap by employing panel data model over the period from 1995 to 2014 to examine current account sustainability in MEA countries. We follow intertemporal budget constraint approach and examine long-run relationship between export and import plus interest on net foreign debt. As we work with panel data, we pay special attention to cross-section dependence. We use annual data collected from World Development Indicators. All data (exports, imports and interest on long-term external borrowing) are in current US dollar and expressed as percentage of GDP. Interest payment on long-term external borrowing (also in current US dollar) is used as a proxy for interest on net foreign debt. Panel unit root test to cross-section dependence indicate variables are first-difference stationary. We next use panel cointegration and bootstrap critical values under null hypothesis to accommodate cross-section dependence. Panel cointegration result suggests that current account is sustainable. However, panel cointegrating regression estimation indicates that the value of sustainability coefficient is less than 1 (one), which implies that current account is weakly sustainable. As current account is weakly sustainable, it is desirable to make policy intervention at macro level to ensure strong sustainability. This may be achieved by accelerating ongoing trade reforms in MEA countries to boost export earnings and hence ensure the sustainability of external debt in the long run. [ABSTRACT FROM AUTHOR]

We consider an exact factor model with unobservable common stochastic trends imposed by non-stationary factors, and study, by simulation, the power of the likelihood ratio test for unit roots in the idiosyncratic components. The power of the test is compared with the analogous Lagrange multiplier test and the Fisher-type test proposed by Bai and Ng. The results suggest that the benefit of the likelihood ratio test is in panels with a small cross-section. [ABSTRACT FROM AUTHOR]

Using panel data, this article investigates the long-run relationship between real oil prices and real exchange rates for selected ASEAN countries by utilizing quarterly data from 1973:Q1 to 2013:Q4. The modelling implementation starts with the determination of the stationarity condition of the variables which are found to be integrated of order one. Using Maddala and Wu’s (1999) panel cointegration test, the article finds evidence of cointegration among the variables. The fully modified OLS (FMOLS) and dynamic OLS (DOLS) are then used to estimate the long-run relationship between the variables, followed by applying Toda–Yamamoto causality test. The findings exhibit bidirectional causality between real oil prices and real exchange rates in the long run, where it is highly significant. [ABSTRACT FROM PUBLISHER]

This paper aims to examine the integration properties of nuclear energy consumption per capita by applying the panel unit root test with structural breaks in 27 countries over the period 1993–2013. To obtain comprehensive and exhaustive information, we utilize the longitudinal clustering approach to segment the overall sample into four sub-samples. We find that for the overall sample, nuclear energy consumption is stationary, while two sub-samples contain unit roots. These results imply that shocks to global nuclear energy consumption will only result in temporary deviations from the long-run growth path; however, shocks have a permanent effect on nuclear energy consumption in two sub-samples. Several implications are provided: if shocks have a lasting effect on nuclear energy consumption, policy makers should design energy conservation and stabilization policies in these countries; otherwise, we do not intervene in the process of nuclear energy consumption. [ABSTRACT FROM AUTHOR]

The aim of the present article is to analyze the convergence of regional inflation rates in Turkey from 2004 to 2015 by adopting sigma convergence and distribution dynamics approaches. The outcomes of our research can be summarized in two groups. First, inflation disparities tend to decline over time, especially during the post-crisis period after 2010. Hence, the aggregate price stabilization and disinflation process in Turkey is coupled with convergence in inflation rates across regions. Second, in addition to the findings in the literature, we find that regions change their relative inflation rate positions quite often. This indicates that regional inflation behavior is random and non-structural, as the relatively high and low inflationary places tend to change their quintiles frequently. The results imply several policy suggestions. First, achieving inflation convergence is a harder task than initially understood, as it seems to show random behavior. Second, trade integration can be an option to foster regional price convergence. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to identify whether any financial integration exists among ASEAN+5 members and some East Asian countries, including China, Japan, Korea, Hong Kong, and Taiwan, through interest rate, exchange rate, level of prices, and real output. Design/methodology/approach – Therefore, the authors intend to identify any long-term relationship among these variables utilizing the data in the most efficient manner via panel cointegration and panel unit root tests. The study likewise uses a panel-based vector error correction (panel-vec) model for comparison and also short-run relationship analysis. The long-run relationship is estimated using dynamic ordinary least square technique and a panel multi-layer perceptron (MLP) neural network. Findings – For the ten countries under consideration, the empirical result supports the long-run equilibrium relationship among real output, exchange rate, interest rate, and level of prices, and that the cointegration relationship implies unidirectional causality from exchange rate to real output. This result is favorable to a model that contains real output as a dependent variable and exchange rate, interest rate, and level of prices as explanatory variables. Panel-vec results indicate no evidence of short-run causality from exchange rate to real output. Furthermore, the comparison result of long-run equation estimation shows the superiority of neural networks over econometric models. Originality/value – This paper adds to the literature by examining the financial cointegration using a panel model that contains real exchange rate, interest rate, real output, and inflation rate in ASEAN+5. Additionally this paper applied the MLP neural network to yield a robust estimation of the long-run equation obtained among the variables. [ABSTRACT FROM AUTHOR]

High level of intra-regional trade and negative spillovers from competitive devaluation make exchange rate coordination extremely desirable in Asia. Employing a hypothetical Asian Currency Unit we evaluate the degree of coordination among Asian currencies. Traditional empirical tests yield little evidence of coordination among real and nominal exchange rates. However, introducing endogenously determined structural breaks to account for changes in exchange rate regimes provides more mixed evidence. While there is still little evidence for coordination in nominal terms, some degree of coordination among real rates emerges. The limited evidence for exchange rate coordination can be explained by the diverse exchange rate regimes prevailing in these economies, signaling differences in policy objectives. [ABSTRACT FROM AUTHOR]

Using international data, this paper explores whether the efficient market hypothesis for real stock prices is supported for different panels. The stationarity of a real stock price has important implications for modeling and forecasting financial activities. On a global scale, we implement the recently developed nonlinear heterogeneous panel unit root test, which allows us to account for possible nonlinearity and cross-section dependence and to identify how many and which countries of the panel contain a unit root. The primary conclusion is that the stationarity of real stock prices varies between regions and levels of economic development. Overall, our empirical results illustrate that real stock prices in these countries are a mixture of stationary (integrated of order zero) and nonstationary (integrated of order one) processes. [ABSTRACT FROM AUTHOR]

Purpose – This study aims to examine the stationarity characteristics of per capita GDP of 17 Asian countries and subpanels for South Asia, East Asia, and high income Asian countries in nonlinear framework. Design/methodology/approach – The authors employed a recently developed nonlinear panel unit root test suggested by Ucar and Omaga in PESTAR framework for full panel and the subpanels. Findings – The results indicate that per capita GDP for the full panel of Asian countries and panel of South Asian countries are linear nonstationary, whereas for the panel of East Asia and high income developed countries have a nonlinear data generating process and are stationary. Originality/value – The use of newly developed nonlinear panel unit root test for Asian countries is the main contribution of the study. In that aspect, this is the first study to employ such a test in this area. [ABSTRACT FROM AUTHOR]

In an era, where 'traditional society' is replaced by a 'knowledge society', there is a global inclination towards creating knowledge and nurturing its affiliated factors. Accordingly, this paper intends to scrutinize the hypothesized causal relationship between ICT and knowledge creation. Variables for ICT and knowledge creation are taken from World Development Indicators (WDI). To the best of our knowledge, this is the first study of its kind that explicitly constructs an empirical framework for ICT and knowledge creation. Depending on the availability of data, 24 countries have been selected from Asia. Time dimension for the data set is from 1990-2013, yielding a panel data set. To conduct statistical analysis of the relevant variables, we use Pooled Mean Group Estimator (PMGE), Mean Group Estimator (MGE) and Dynamic Fixed Effects Estimator (DFEE).Recommendations are made on the basis of findings from empirical analysis. To nurture knowledge creation in the knowledge society, the role of ICT is found to be positive. For a mature knowledge society, ICT, expenditure in R&D and researchers in R&D have a constructive role. [ABSTRACT FROM AUTHOR]

This paper analyzed the impact and causal relation of outbound Chinese FDI on growth, employment and export performance of 16 selected US States by using Panel data. The contemporaneous panel fixed estimation results shows that the impact of Chinese outbound FDI on the economic growth, employment and export of selected states are insignificant. But the impact of FDI on growth turns positive and significant when interacted with States export to China. Applying heterogeneous panel causality approach on a refined dynamic panel model indicates that Chinese FDI does not cause GDP, exports and employment while the results of reverse causality confirm that US State GDP (market size) cause the inflow of Chinese outbound FDI. The overall impact of Chinese outbound investment, a small portion of the total FDI inflow to the US, varies from conditionally positive to utterly insignificant without any adverse impact on the local economy. [ABSTRACT FROM AUTHOR]

Since economic theory provides reasons for nonlinearity in economic variables due to frictions/distortions in the economy, the use of linear unit root tests to examine the nonstationary properties of per-capita GDP (PCGDP) may provide misleading results. With this background we have analyzed the mean reversion properties of per capita real GDP of Association of South East Asian Nations (ASEAN) countries (for the period 1950-2010) using the recently developed Ucar and Omaga (Econ Lett 104:5-8, ) nonlinear panel unit root test. The results indicate that the PCGDP of ASEAN countries are nonlinear process and are stationary. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between government spending and economic growth. Economic theory generally expects a negative relationship between these variables for rich countries with large public sectors. However, empirical studies often cannot find a robust negative relationship and have provided mixed empirical evidence. In the case of the relationship between public expenditure and economic growth it appears that specification of econometric methods, data selection and time span could affect the findings and lead to contradictory conclusions. This paper utilizes a panel of cross-sectional and time series data for 16 OECD countries over the 1995-2010 periods to reexamine the relationship between government spending and economic growth by conducting econometric panel study. We investigate the unit root properties and cointegration, long-run economic relationship, between government expenditure and economic growth to test the validity of Wagner's Law. Our findings indicate that government spending exerts a positive and significant influence on economic growth and provide evidence for the validity of Wagner's law. [ABSTRACT FROM AUTHOR]

This article examines whether Inflation Targeting (IT) matters for long-run Purchasing Power Parity (PPP). For this purpose, we formally assess the evidence on PPP for a panel of 19 countries using two price indices and two panel unit root tests with cross-sectional dependence. The empirical results show that IT plays an important role in providing favourable evidence for long-run PPP. [ABSTRACT FROM PUBLISHER]

This paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Estimates from a dynamic model for five major manufacturing industries spanning the 1975-2002 period suggest that the effect of increased openness to trade is associated with a decrease in wage inequality. The result is in line with the theoretical prediction in that greater openness is expected to reduce wage inequality in developing countries. [ABSTRACT FROM AUTHOR]

This article aims to test the income convergence hypothesis in the Association of Southeast Asian Nations (ASEAN) region using new panel unit root tests. As the newer member states of ASEAN are gradually developing in order to enter the economic zone, it was found that the great majority of original members showed income convergence over a long time period of 50 years. However, when a 22-year period was explored to encompass these newer member states, only three countries were found to support the existence of a 'catch-up' effect. This testing method as applied to the ASEAN economic zone results in outcomes that vary from other examples, which can be explained by the diverse political histories of the member countries and their relatively recent reform processes. [ABSTRACT FROM AUTHOR]

In this study, we address an econometric issue which has so far been neglected by the empirical studies on separation principle. The earlier studies largely applied Granger causality test by differencing the data if they are integrated time series. Such an approach produces specification bias if integrated variables in level are cointegrated and thus, ignoring the long run dynamics among the variables. To circumvent this problem, we test for cointegration between investments and dividends and estimate a dynamic panel vector error correction model. Annual time series data over the period 1995 to 2008 for various sectors chosen on the basis of the available sectoral indices of National Stock Exchange are considered for empirical analysis. The empirical evidence derived from group mean and lambda-Pearson tests seem to indicate that there is long run causal link between investments and dividends and therefore, firms’ decisions regarding dividend payout and investments are inseparable. [ABSTRACT FROM AUTHOR]

Purpose – The aim of this paper is to examine the relationship between relative population growth and purchasing power parity (PPP) exchange rate for a panel of 80 countries. Design/methodology/approach – Panel unit root and panel cointegration tests have been used to investigate the above relationship over the period of 1951-2000. Findings – The empirical results show that there is stable relationship between PPP exchange rate and relative population growth in these selected countries in the long run. The results also show that this long-run relationship remains valid when the sample is divided on the basis of their stage of development. Practical implications – These empirical findings suggest that population growth has an important role in exchange rate determination through PPP. Originality/value – Thus, relative population growth could invalidate the PPP hypothesis in the long run. PPP is the main edifice of most of the monetary exchange rate models. Hence, the role of relative population growth should be taken into account in dealing with issues in international macroeconomics and renewed attention should be given in the theory of exchange rate determination in terms of relative population growth instead of relative price level. [ABSTRACT FROM AUTHOR]

Abstract: The global energy issues have stimulated increasing research interest in the linkages between the energy consumption and economic growth. As the biggest developing country, China has surpassed United States to be the world''s largest energy consumption country. This paper examines the casuality between GDP and energy consumption by using updated China provincial panel data for the period 1985–2007 within a multivariate framework by adopting Pedroni''s panel methodology. The results show that cointegration is present between real GDP, energy consumption, the labor force, and real gross fixed capital. The results of Granger-causality test indicate the presence of Bi-directional causality between energy consumption and economic growth which supports the feed back hypothesis.Economic interpretations of the empirical results are also presented. [Copyright &y& Elsevier]