The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries

Volume: 7 Number: 1 March 1, 2017
  • Aviral Kumar Tiwari
  • Faridul Islam
  • Süleyman Bolat
  • Phouphet Kyophilavong
  • Byoungki Kim
EN

The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries

Abstract

We apply the panel covariate augmented Dickey-Fuller test to test stationarity of the productivity series for the OECD and Big-7 economies. The approach takes cross-sectional dependence into account. Using hours-worked per worker, we find that the series is non-stationary for the 25 OECD countries; but for the Big-7 the results are mixed. So, this paper achieves a battery of panel unit root tests to examine the stationarity properties of the series named hours worked per employee. The study period covers 1960-2012 for the OECD and the Big 7 countries. The tests we use account for cross sectional dependence and those that do not account for such dependence. Our results suggest that an analyst might infer that hours worked fall after a positive technology shock, when it may go up in a true data-generating process. The findings also suggest that although in a true data-generating process, the series may go up from a positive technology shock, analysts may infer a fall. The stationarity of the series is relevant in determining the effect of positive technology shock on productivity.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

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Authors

Aviral Kumar Tiwari This is me

Faridul Islam This is me

Süleyman Bolat This is me

Phouphet Kyophilavong This is me

Byoungki Kim This is me

Publication Date

March 1, 2017

Submission Date

March 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 1

APA
Tiwari, A. K., Islam, F., Bolat, S., Kyophilavong, P., & Kim, B. (2017). The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries. International Journal of Economics and Financial Issues, 7(1), 613-618. https://izlik.org/JA24EG92ND
AMA
1.Tiwari AK, Islam F, Bolat S, Kyophilavong P, Kim B. The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries. IJEFI. 2017;7(1):613-618. https://izlik.org/JA24EG92ND
Chicago
Tiwari, Aviral Kumar, Faridul Islam, Süleyman Bolat, Phouphet Kyophilavong, and Byoungki Kim. 2017. “The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries”. International Journal of Economics and Financial Issues 7 (1): 613-18. https://izlik.org/JA24EG92ND.
EndNote
Tiwari AK, Islam F, Bolat S, Kyophilavong P, Kim B (March 1, 2017) The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries. International Journal of Economics and Financial Issues 7 1 613–618.
IEEE
[1]A. K. Tiwari, F. Islam, S. Bolat, P. Kyophilavong, and B. Kim, “The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries”, IJEFI, vol. 7, no. 1, pp. 613–618, Mar. 2017, [Online]. Available: https://izlik.org/JA24EG92ND
ISNAD
Tiwari, Aviral Kumar - Islam, Faridul - Bolat, Süleyman - Kyophilavong, Phouphet - Kim, Byoungki. “The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 613-618. https://izlik.org/JA24EG92ND.
JAMA
1.Tiwari AK, Islam F, Bolat S, Kyophilavong P, Kim B. The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries. IJEFI. 2017;7:613–618.
MLA
Tiwari, Aviral Kumar, et al. “The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 613-8, https://izlik.org/JA24EG92ND.
Vancouver
1.Aviral Kumar Tiwari, Faridul Islam, Süleyman Bolat, Phouphet Kyophilavong, Byoungki Kim. The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries. IJEFI [Internet]. 2017 Mar. 1;7(1):613-8. Available from: https://izlik.org/JA24EG92ND