Abstract

This paper examines the unit root hypothesis for real GDP per capita in China's provinces using standard Augmented Dickey-Fuller (ADF), panel data and multiple trend break unit root tests. Standard ADF tests suggest there is a unit root in real GDP per capita for about two-thirds of China's provinces. The panel data test fails to reject the unit root null for the h11 sample. However, when we allow for structural breaks in the individual ADF tests, the results provide much stronger evidence against a unit root. The null hypothesis that real GDP per capita has a unit root is rejected in favour of the alternative hypothesis for 19 or 20 of the 24 regions depending on the exact model.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.