A stochastic convergence analysis for selected East Asian and Pacific countries: A Fourier unit root test approach


Yılancı V., SARIDOĞAN E. , ARTAR O.

Theoretical and Applied Economics, vol.XXI, no.9, pp.51-60, 2014 (Refereed Journals of Other Institutions)

  • Publication Type: Article / Article
  • Volume: XXI Issue: 9
  • Publication Date: 2014
  • Title of Journal : Theoretical and Applied Economics
  • Page Numbers: pp.51-60

Abstract

The main aim of this study is to analyze stochastic convergence dynamics for selected East Asian and Pacific countries over the period 1960–2010, using a recently introduced unit root test with a Fourier function capable of capturing unknown form for structural breaks. Our test results show that we cannot reject the stochastic convergence hypothesis for Australia, Fiji, Korea, Nepal, Pakistan, Philippines, and Thailand.