Transition Studies Review

, Volume 20, Issue 2, pp 149–157

Are Shocks to Real Output Permanent or Transitory? Evidence from a Panel of “Asean” Per Capita GDP Data

World Transition Economy Research

DOI: 10.1007/s11300-013-0282-6

Cite this article as:
Suresh, K.G. & Tiwari, A.K. Transit Stud Rev (2013) 20: 149. doi:10.1007/s11300-013-0282-6

Abstract

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, 2009) nonlinear panel unit root test. The results indicate that the PCGDP of ASEAN countries are nonlinear process and are stationary.

Keywords

Mean reversionPanel unit rootASEAN countriesNonlinearityHeterogeneous panel

JEL Classification

C 01C 23O 01O 04

Copyright information

© CEEUN 2013

Authors and Affiliations

  1. 1.IBS Business SchoolICFAI UniversityDehradunIndia
  2. 2.ICFAI UniversityKamalghatIndia