Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test
The stability of macroeconomic variables and whether the impact of a shock on these variables is permanent or temporary is important for policy-makers and researchers. As an indicator of growth and prosperity, gross domestic product (GDP) is among the important macroeconomic variables. After all, du...
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Sivas Cumhuriyet Üniversitesi
2021-11-01
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| Series: | Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/1808604 |
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| _version_ | 1832570622537891840 |
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| author | Tunahan Hacıimamoğlu |
| author_facet | Tunahan Hacıimamoğlu |
| author_sort | Tunahan Hacıimamoğlu |
| collection | DOAJ |
| description | The stability of macroeconomic variables and whether the impact of a shock on these variables is permanent or temporary is important for policy-makers and researchers. As an indicator of growth and prosperity, gross domestic product (GDP) is among the important macroeconomic variables. After all, due to the advantages of current panel data analysis techniques over conventional methods, it is important to use the aforementioned methods in analyzing the existence of unit-root for GDP. Accordingly, the aim of this study is to investigate whether per capita real GDP in G-7 countries followed a stationary process between 1970-2019 with a stronger unit-root test (BCIPS) that takes into consideration cross-section dependence, multi-factor structure, and structural changes. Empirical results reveal that per capita real GDP for G-7 countries has a stationary structure. In this context, it has been determined that the impact of a shock on per capita real GDP is temporary in G-7 countries, therefore, by means of monetary or fiscal policy instruments, it is not necessary to intervene in fluctuations occurring the output level. |
| format | Article |
| id | doaj-art-3e09b3f946004e71a06c621eb3af26a9 |
| institution | Kabale University |
| issn | 1303-1279 |
| language | English |
| publishDate | 2021-11-01 |
| publisher | Sivas Cumhuriyet Üniversitesi |
| record_format | Article |
| series | Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi |
| spelling | doaj-art-3e09b3f946004e71a06c621eb3af26a92025-02-02T14:34:01ZengSivas Cumhuriyet ÜniversitesiCumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi1303-12792021-11-0122212314410.37880/cumuiibf.9483512057Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root TestTunahan Hacıimamoğlu0https://orcid.org/0000-0003-1474-8506RECEP TAYYİP ERDOĞAN ÜNİVERSİTESİThe stability of macroeconomic variables and whether the impact of a shock on these variables is permanent or temporary is important for policy-makers and researchers. As an indicator of growth and prosperity, gross domestic product (GDP) is among the important macroeconomic variables. After all, due to the advantages of current panel data analysis techniques over conventional methods, it is important to use the aforementioned methods in analyzing the existence of unit-root for GDP. Accordingly, the aim of this study is to investigate whether per capita real GDP in G-7 countries followed a stationary process between 1970-2019 with a stronger unit-root test (BCIPS) that takes into consideration cross-section dependence, multi-factor structure, and structural changes. Empirical results reveal that per capita real GDP for G-7 countries has a stationary structure. In this context, it has been determined that the impact of a shock on per capita real GDP is temporary in G-7 countries, therefore, by means of monetary or fiscal policy instruments, it is not necessary to intervene in fluctuations occurring the output level.https://dergipark.org.tr/tr/download/article-file/1808604bcips birim-kök testidurağanlıkg-7 ülkelerikişi başı reel gsyi̇h.bcips unit-root teststationarityg-7 countriesper capita real gdp |
| spellingShingle | Tunahan Hacıimamoğlu Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi bcips birim-kök testi durağanlık g-7 ülkeleri kişi başı reel gsyi̇h. bcips unit-root test stationarity g-7 countries per capita real gdp |
| title | Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test |
| title_full | Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test |
| title_fullStr | Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test |
| title_full_unstemmed | Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test |
| title_short | Is Per Capita Real GDP Stationary in G-7 Countries? New Evidence from A Fourier Panel Unit Root Test |
| title_sort | is per capita real gdp stationary in g 7 countries new evidence from a fourier panel unit root test |
| topic | bcips birim-kök testi durağanlık g-7 ülkeleri kişi başı reel gsyi̇h. bcips unit-root test stationarity g-7 countries per capita real gdp |
| url | https://dergipark.org.tr/tr/download/article-file/1808604 |
| work_keys_str_mv | AT tunahanhacıimamoglu ispercapitarealgdpstationarying7countriesnewevidencefromafourierpanelunitroottest |