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Table 3 IPS and LLC panel unit root test results

From: The Balassa-Samuelson effect reversed: new evidence from OECD countries

 

Det. trend

IPS

LLC

No. of countries

Time -period

Obs.

CA

 

0.933

0.994

18

1970–2008

587

DPOP

 

− 4.269

− 2.837

18

1970–2007

626

GDP

x

1.010

1.591

18

1970–2007

656

GOV

x

3.091

0.130

18

1970–2008

632

NFA

 

3.825

5.781

18

1970–2006

615

RER.AVG

x

− 1.172

− 1.116

18

1970–2008

665

RI

 

− 0.500

− 0.331

18

1970–2008

621

TOT

 

0.233

0.214

18

1970–2008

640

ULC

x

− 1.268

− 7.072

18

1970–2008

647

LP.TSTAN

x

1.282

− 1.540

18

1970–2008

559

LP.NTSTAN

x

1.651

1.131

18

1970–2008

550

TFP.TPDBi

x

− 0.021

− 1.537

14

1985–2008

198

TFP.NTPDBi

x

1.782

0.077

13

1985–2008

192

LP.TISDB

x

2.923

2.906

14

1970–1997

325

LP.NTISDB

x

1.909

1.103

14

1970–1997

322

TFP.TISDB

x

1.360

0.886

14

1970–1997

314

TFP.NTISDB

x

1.720

0.614

14

1970–1997

307

  1. Notes:x indicates the inclusion of a deterministic trend. Because all estimations contain time-specific dummy variables, the real exchange rate of each country is computed with respect to the average sample country for the unit root tests (RER.AVG). IPS, lag length selection by the modified SIC (Ng and Perron 2001); LLC, lag length selection by modified SIC; Bartlett kernel, Newey-West bandwidth. The panel is unbalanced: the time period marks the maximum years available. *, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively