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GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK

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...

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Main Authors: Furuoka, Fumitaka, Pui, Kiew Ling, Ezeoke, Chinyere Mary, Jacob, Ray I., Yaya, Olaoluwa S.
Format: Article
Published: World Scientific 2024
Subjects:
HB Economic Theory
Online Access:http://eprints.um.edu.my/45502/
https://doi.org/10.1142/S0217590820500083
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spelling my.um.eprints.455022024-10-25T02:36:33Z http://eprints.um.edu.my/45502/ GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK Furuoka, Fumitaka Pui, Kiew Ling Ezeoke, Chinyere Mary Jacob, Ray I. Yaya, Olaoluwa S. HB Economic Theory 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. World Scientific 2024-03 Article PeerReviewed 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 <https://doi.org/10.1142/S0217590820500083>. https://doi.org/10.1142/S0217590820500083 10.1142/S0217590820500083
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic HB Economic Theory
spellingShingle HB Economic Theory
Furuoka, Fumitaka
Pui, Kiew Ling
Ezeoke, Chinyere Mary
Jacob, Ray I.
Yaya, Olaoluwa S.
GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
description 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.
format Article
author Furuoka, Fumitaka
Pui, Kiew Ling
Ezeoke, Chinyere Mary
Jacob, Ray I.
Yaya, Olaoluwa S.
author_facet Furuoka, Fumitaka
Pui, Kiew Ling
Ezeoke, Chinyere Mary
Jacob, Ray I.
Yaya, Olaoluwa S.
author_sort Furuoka, Fumitaka
title GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
title_short GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
title_full GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
title_fullStr GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
title_full_unstemmed GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK
title_sort growth slowdowns and middle-income trap: evidence from new unit root framework
publisher World Scientific
publishDate 2024
url http://eprints.um.edu.my/45502/
https://doi.org/10.1142/S0217590820500083
_version_ 1814047570367873024
score 13.211869

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