Are real GDP levels nonstationary across Central and Eastern European countries?

作者：Shen Pei Long; Su Chih Wei^*; Chang Hsu Ling

来源：Baltic Journal of Economics, 2013, 13(1): 99-108.

DOI：10.1080/1406099x.2013.10840528

• Per Capita Real GDP
• Sequential Panel Selection Method
• Fourier Function
• Structural Change

This study applies the Sequential Panel Selection Method (SPSM) proposed by Chortareas and Kapetanios (2009) to investigate and assess the non-stationary properties of whether real GDP follows a trend stationary or a difference stationary process for Central Eastern European (CEE) countries. SPSM can classify the whole panel into a group of stationary series and a group of non-stationary series. We clearly identify how many and which series in the panel are stationary processes and provide robust evidence clearly indicating that per capita real GDP for CEE countries holds stationary for three countries. Our findings point out their per capita real GDP convergence is a mean reversion towards equilibrium values in a non-linear way. Our results have important policy implications for macroeconomic policy, modeling, testing and forecasting for these CEE countries under study.

• 出版日期2013
• 单位山西大学