Is per capita real GDP stationary? Non-linear panel unit-root tests from Eastern-European countries (p.65-74)  [Fichier PDF]
Chi-Wei Su, Tamkang University,Taiwan (R.O.C.)
Hsu-Ling Chang, Lin Tung University, Taiwan (R.O.C.)
Keywords : Non-linear panel unit-root test, Per capita real GDP
JEL classification : O1, O4
In this paper, we apply non-linear panel unit-root test to assess the non-stationary properties of the per capita real GDP for seven Eastern-European Countries. We find that non-linear panel unit-root test has higher power than linear method suggested by Breuer et al. (2001) if the true data generating process of exchange rate is in fact a stationary non-liner process. We investigate the stationary of per capita real GDP from the panel non-linear point of view and provide robust evidence clearly indicate that real output is well characterized by a non-linear mean reverting process, namely Czech Republic, Hungary, Malta and Poland. These results have important policy implications for Eastern-European countries.