A bounds test approach to the study of level relationships in a panel of high-performing Asian economies (HPAES)

Ozanne, Arlene L G

A bounds test approach to the study of level relationships in a panel of high-performing Asian economies (HPAES)

Ozanne, Arlene L G

Cite this item: Ozanne, A. L. G. (2006). A bounds test approach to the study of level relationships in a panel of high-performing Asian economies (HPAES) (Economics Discussion Papers Series No. 607). University of Otago. Retrieved from http://hdl.handle.net/10523/1045

Permanent link to OUR Archive version: http://hdl.handle.net/10523/1045

Date: 2006-12-07

Publisher: University of Otago

Pages: 27

Series: Economics Discussion Papers Series

Series number: 607

Keywords: total factor productivity; panel data analysis; JEL classification: O40.O50; High-Performing Asian Economies

Research Type: Discussion Paper

Abstract:

This study analyses long-run level relationships between total factor productivity (TFP) and a set of variables (the degree of openness of an economy, the different roles of government, and human capital) that are hypothesised as the major factors that drive TFP in the High-Performing Asian Economies (HPAEs).

We apply Pesaran, Shin and Smith’s (2001) bounds test approach to the analysis of level relationships between TFP and its hypothesised determinants using panel data for five HPAEs (Indonesia, Malaysia, Singapore, South Korea and Thailand) and find evidence of a long-run relationship between TFP and our hypothesised determinants, irrespective of whether the regressors are I(0) or I(1).

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