the composition of government spending and the real exchange rate 17
Table 1: Panel Unit Root and Cointegration Tests
|
Panel A: Unit Root Test |
Levin, Lin |
Im, Pesaran |
PP-Fisher Chi-Square |
|
ln(REER) |
0.33 |
0.04 |
0.07 |
|
ln(RNP) |
0.79 |
1.00 |
0.99 |
|
ln(Prod. Diff.) |
0.18 |
1.00 |
0.31 |
|
Trade Balance |
0.00 |
0.00 |
0.00 |
|
ln(Rel. GDP per capita) |
0.30 |
0.41 |
0.78 |
|
Rel. Govt. Consumption |
0.04 |
0.03 |
0.59 |
|
Rel. Govt. Investment |
0.00 |
0.00 |
0.05 |
|
Govt. Consumption |
0.06 |
0.02 |
0.47 |
|
Govt. Investment |
0.00 |
0.03 |
0.01 |
|
ln(GDP per capita) |
0.22 |
1.00 |
1.00 |
Panel B: Kao Cointegration Test
ln(REER) Trade Balance ln(Rel. GDP per capita) -6.12
Rel. Govt. Consumption Rel. Govt. Investment (0.00)
ln(RNP) Trade Balance ln(GDP per capita) -1.67
Govt. Consumption Govt. Investment (0.05)
ln(Prod. Diff.) ln(GDP per capita) Govt. Investment -2.14
(0.02)
Note: ln stands for natural logarithm; REER indicates the real effective exchange rate
computed by the authors using trade shares provided by Bayoumi et al (2005) using
the set of countries listed in Appendix A; RNP is the unit value of services relative to
manufacturing; Prod. Diff. is the ratio of labor productivity of services to manufacturing
sector; Trade Balance is the trade balance as a share of GDP; Rel. GDP per capita is real
relative GDP per capita; Rel. Govt. Consumption is relative government consumption
as a share of GDP; Rel. Govt. Investment is government investments as a share of GDP;
Govt. Consumption is the government consumption as a share of GDP; Govt. Investment
is government investment as a share of GDP; GDP per capita is real GDP per capita.
More intriguing information
1. Optimal Vehicle Size, Haulage Length, and the Structure of Transport Costs2. The geography of collaborative knowledge production: entropy techniques and results for the European Union
3. DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA
4. Cultural Neuroeconomics of Intertemporal Choice
5. Education Research Gender, Education and Development - A Partially Annotated and Selective Bibliography
6. THE CHANGING RELATIONSHIP BETWEEN FEDERAL, STATE AND LOCAL GOVERNMENTS
7. Strategic monetary policy in a monetary union with non-atomistic wage setters
8. An Investigation of transience upon mothers of primary-aged children and their school
9. Public Debt Management in Brazil
10. The name is absent