Globalization, Real Output and Multiple Structural Breaks
<title>Abstract</title> This paper adopts an advanced panel cointegration method which incorporates multiple structural breaks to examine the long-run relationship between real output (RGDP) and the Konjunkturforschungsstelle (KOF) index of globalization (overall and its three main sub-indices), employing annual data of G7 countries from 1970 to 2006. Our empirical findings provide strong evidence that overall globalization and its social dimension are cointegrated with RGDP, and most of the structural break points are discovered during the period of the oil crisis (the mid-1970s) and the process of European Union integration. In addition, in evaluating whether or not the structural breaks affect the RGDP through globalization, we discover that both the overall globalization index and the social globalization index have a directly positive impact on RGDP but indirectly exhibit negative impacts on real output via the channel of social globalization.
Year of publication: |
2011
|
---|---|
Authors: | Chang, Chun-Ping ; Lee, Chien-Chiang ; Hsieh, Meng-Chi |
Published in: |
Global Economic Review. - Taylor & Francis Journals, ISSN 1226-508X. - Vol. 40.2011, 4, p. 421-444
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Globalization, real output and multiple structural breaks
Chang, Chun Ping, (2011)
-
Does globalization promote real output? : evidence from quantile cointegration regression
Chang, Chun Ping, (2015)
-
Does globalization promote real output? Evidence from quantile cointegration regression
Chang, Chun-Ping, (2015)
- More ...