Mean reversion in per capita GDP of Asian countries: Evidence from a nonlinear panel unit root test
Abstract
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.
Keywords
Acknowledgements
JEL classification – C01, C23, O01, O04 The authors are thankful to an anonymous referee for constructive suggestions and comments on the earlier draft of the paper. Nuri Ucar and T. Omay are gratefully acknowledged for being so generous to provide the authors codes of their study. Of course, any errors that remain are the authors. The usual disclaimer applies.
Citation
Kumar Tiwari, A. and Suresh, K.G. (2014), "Mean reversion in per capita GDP of Asian countries: Evidence from a nonlinear panel unit root test", Journal of Economic Studies, Vol. 41 No. 1, pp. 2-11. https://doi.org/10.1108/JES-09-2011-0109
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited