Furuoka, Fumitaka and Pui, Kiew Ling and Ezeoke, Chinyere Mary and Jacob, Ray I. and Yaya, Olaoluwa S. (2024) GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK. Singapore Economic Review, 69 (01). pp. 461-477. ISSN 0217-5908, DOI https://doi.org/10.1142/S0217590820500083.
Full text not available from this repository.Abstract
This paper suggests a new testing procedure to systematically examine the middle-income trap (MIT). To empirically demonstrate this procedure, one high income and 14 middle-income countries are examined using newly developed unit root tests - Fourier ADF with structural break (FADF-SB) and Seemingly Unrelated Regressions Fourier ADF (SUR-FADF). The FADF-SB test incorporates unknown nonlinearity and smooth break in the time-series, while the SUR-FADF test accounts for cross-sectional dependency. The empirical findings produced mixed results: 10 countries have a relatively high possibility of facing the MIT problem, while only one country has a relatively low possibility of facing the problem. For the remaining three countries, it is uncertain whether they will face the problem of MIT. These empirical findings have significant policy implications.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | Cross-sectional dependency; Fourier approximation; income convergence; middle-income trap; structural break; unit root |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Law Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute Faculty of Business and Economics |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 25 Oct 2024 02:36 |
| Last Modified: | 25 Oct 2024 02:36 |
| URI: | http://eprints.um.edu.my/id/eprint/45502 |
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