Gil-Alana, Luis A.; Luqui, Natalia; Cunado, Juncal - In: Economic Notes 37 (2008) 1, pp. 59-74
variables using unit roots and co-integration methods, and the results are ambiguous. We try a new approach based on fractional … integration. The unit root hypothesis is rejected in case of the trade balance in favour of smaller orders of integration, while … this hypothesis is not rejected for the exchange rate. Thus, the two series do not possess the same order of integration …