Is Chinese Provincial Real GDP Per Capita Nonstationary? Evidence From Panel Data and Multiple Trend Break Unit Root Tests
2017-06-07T05:39:04Z (GMT) by
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.