sharma-areshockstorealoutput-2009.pdf (460.3 kB)
Download file

Are shocks to real output permanent or transitory? Evidence from a panel of Pacific Island countries

Download (460.3 kB)
journal contribution
posted on 01.11.2009, 00:00 authored by V Mishra, Susan SharmaSusan Sharma, R Smyth
Panel unit root and stationarity tests without structural breaks suggest that for eight Pacific island economies real gross domestic product (GDP) per capita contains a unit root. The panel stationarity test that accommodates structural change in the trend function, however, finds evidence in favour of regimewise trend stationarity. This result points to the importance of taking structural breaks into account. The finding implies that, for the period considered, the permanent secular component of output is dominated by transitory fluctuations accompanied by infrequent changes in the trend function. The only exceptions are Fiji and Kiribati, for which individual stationarity tests with multiple structural breaks suggest that real GDP per capita contains a unit root.

History

Journal

Pacific economic bulletin

Volume

24

Issue

1

Pagination

65 - 82

Publisher

Asia Pacific Press

Location

Canberra, A. C. T.

ISSN

0817-8038

eISSN

1834-9455

Language

eng

Notes

Every reasonable effort has been made to ensure that permission has been obtained for items included in Deakin Research Online. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

2009, The Australian National University