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Testing for Structural Breaks in Macroeconomic Processes of Growth

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Abstract

This chapter investigates structural changes in economic growth, using the sample of four countries, i.e. Ireland, Spain, Turkey and the Netherlands, and covers the time period 1980–2016. In this case, structural breaks are interpreted as large, infrequent shocks switching the economy from one regime to another. In order to search for structural changes, the unit-root and the structural breaks testing methodology is applied. Specifically, a pure structural change model with the Andrews–Zivot test and the Bai–Perron test are employed. The paper’s findings suggest that most of the structural breaks for these four countries are specific to their situation. Nevertheless, the financial crisis of 2007–2009 is indicated as common for all of them.

Financial support from research project no. 2015/17/B/HS4/01000 supported by the National Science Centre in Poland is gratefully acknowledged.

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Authors and Affiliations

  1. Department of Econometrics and Statistics, The Faculty of Economic Sciences and Management, Nicolaus Copernicus University, Toruń, Poland

    Marcin Fałdziński

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  1. Marcin Fałdziński
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Correspondence to Marcin Fałdziński .

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  1. Department of Econometrics and Statistics, The Faculty of Economic Sciences and Management, Nicolaus Copernicus University, Toruń, Poland

    Magdalena Osińska

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Fałdziński, M. (2019). Testing for Structural Breaks in Macroeconomic Processes of Growth. In: Osińska, M. (eds) Economic Miracles in the European Economies. Springer, Cham. https://doi.org/10.1007/978-3-030-05606-3_7

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