ScholarLens Back to search
2003•RePEc: Research Papers in EconomicsRequires access

A re-examination of the Balassa-Samuelson hypothesis using recent panel data unit-root and cointegration tests: Evidence from MENA countries

Imed Drine, Christophe Rault

Open publisher page 0 citations

Abstract

The main goal of this paper is to reassess the Balassa-Samuelson hypothesis using annual data for 16 Middle East and North African (MENA) countries. We carry out recent panel data unit-root tests proposed by Im et al. (1997) and recent panel data cointegration techniques developed by Pedroni (1999) and we compare the results with those obtained with conventional time series unit-roots and cointegration tests. Our main finding is that whereas the standard time series approach rejects the Balassa-Samuelson hypothesis for 11 countries out of 16, new panel cointegration techniques rescue this hypothesis for MENA countries. © African Development Bank 2003.

About this research paper

What this paper is about

The main goal of this paper is to reassess the Balassa-Samuelson hypothesis using annual data for 16 Middle East and North African (MENA) countries. We carry out recent panel data unit-root tests proposed by Im et al. (1997) and recent panel data cointegration techniques developed by Pedroni (1999) and we compare the results with those obtained with conventional time series unit-roots and cointegration tests. Our main finding is that whereas the standard time series approach rejects the Balassa-Samuelson hypothesis for 11 countries out of 16, new panel cointegration techniques rescue this hypothesis for MENA countries. © African Development Bank 2003.

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

The main goal of this paper is to reassess the Balassa-Samuelson hypothesis using annual data for 16 Middle East and North African (MENA) countries. We carry out recent panel data unit-root tests proposed by Im et al. (1997) and recent panel data cointegration techniques developed by Pedroni (1999) and we compare the results with those obtained with conventional time series unit-roots and cointegration tests. Our main finding is that whereas the standard time series approach rejects the Balassa-Samuelson hypothesis for 11 countries out of 16, new panel cointegration techniques rescue this hypothesis for MENA countries. © African Development Bank 2003.

Key concepts: Cointegration, Unit root, Economics, Econometrics, Panel data, Carry (investment), Structural break, Unit (ring theory)

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
A re-examination of the Balassa-Samuelson hypothesis using recent panel data unit-root and cointegration tests: Evidence from MENA countries — Research Paper | ScholarLens