Convergence of Inflationary Shocks: Evidence from the Caribbean

Cuestas, Juan Carlos; Ramlogan-Dobson, Carlyn

doi:10.1111/twec.12082

Cited by 4 publications

(3 citation statements)

References 53 publications

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“…Sollis (2009) developed a new procedure that allows for symmetrical or asymmetrical nonlinear adjustments by extending the scope of this assumption. In this test, the speed of mean reversion will be different depending on the sign of the shock, not only the size (Cuestas and Ramlogan-Dobson 2013). The model to be used for the test based on the AESTAR model proposed by Sollis (2009) is as follows:…”

Section: Expmentioning

confidence: 99%

Does Middle Income Trap Exist?: Evidence From Emerging Economies: E7 Countries for 1969-2015

Tiftikçigil

Güri̇ş

Yaşgül

2018

RGE

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The E7 countries (China, India, Brazil, Russia, Mexico, Indonesia and Turkey)that have been growing fast since 1990s have been under the middle income countrycategory according to the income category classification of the World Bank for a longperiod of time. Researchers have been interested especially in emerging economies thathave not been able to move up from the middle income category to the high incomecategory and this has led to the initiation of what’s called the ‘middle income trap’ (MIT)discussions in literature. The MIT is generally defined as the countries under the middleincome category failing to move up to the high income category. Therefore, the purpose ofthis study is to identify the presence of MIT in E7 countries that hold an importantposition in global economy. The unit root tests were used in the empirical phase of thestudy. This study’s difference from other studies is the fact that both the time series andthe panel data unit root tests were used both in linear and nonlinear forms, thuspreventing the misleading results created by choosing the wrong model specification.The USA was taken as the reference country in the study and the GNI per capitaaccording to the Atlas method (current US$) data of the World Bank was used for the E7countries for the period 1969-2015. To achieve consistency in the analysis results, Russiawas not included in the model as there were no data available for the same period forRussia given the fact that the same timeframe should be taken as the basis for allcountries. The empirical analysis showed that the E7 countries do not fall into the MIT.

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Section: Expmentioning

confidence: 99%

Does Middle Income Trap Exist?: Evidence From Emerging Economies: E7 Countries for 1969-2015

Tiftikçigil

Güri̇ş

Yaşgül

2018

RGE

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“…Cuestas and Dobson () built on the work of Pentecost and Turner () by investigating inflation persistence among the potential twelve members of the proposed CMU. Using various time series methods, such as unit root tests, Cuestas and Dobson () found evidence of a ‘convergence club’ of inflation rates within the region, which lends support for a unified monetary policy and by extension a common currency, in contravention to the findings of previous studies. Craigwell and Maurin () also investigated, through descriptive and rigorous econometric techniques, the issue of convergence in terms of per capita GDP.…”

Section: Literature Reviewmentioning

confidence: 99%

What Do Demand and Supply Shocks Say About Caribbean Monetary Integration?

Braithwaite

2016

World Economy

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This study seeks to ascertain whether the member states of the Caribbean Community (CARICOM) share similar supply and demand shocks. If so, an argument can be made for the suitability of said countries being part of a currency union. The results show that no significant correlation exists for the majority of countries studied, and as such no economic justification for the monetary union can be made based on the methodology used. However, the Eastern Caribbean Currency Union (ECCU), whose members are a part of CARICOM, is supported by the results.

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“…Sollis [16] stretched this assumption and developed a new test procedure that allows for symmetric or asymmetric nonlinear adjustments. In this test, the speed of mean reversion is different depending on the sign of the shock, not only the size [23]. The model to use for the test based on the AESTAR model developed by Sollis [16] is as follows:…”

Section: ) Sollis (2009) Unit Root Testmentioning

confidence: 99%

Convergence of Energy Intensity in OECD Countries

Canel¹,

Güri̇ş²,

Güri̇ş³

et al. 2017

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This paper investigates whether there is energy intensity convergence in the Organization for Economic Cooperation and Development (OECD) countries or not by using annual data from the 1980-2011 period. OECD countries are Australia, Austria, Belgium, Canada, Chile, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, North Korea, South Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, UK, and USA. Energy intensity is measured by the ratio of total energy consumption to total output. Energy intensity measures the energy consumption of an economy and its overall energy efficiency. We used linear and nonlinear unit root tests from the recent literature to accomplish this goal. An analysis of the test results shows that there is no convergence in Chile, Finland, Greece, Ireland, South Korea, Luxembourg, Mexico, Netherlands, New Zealand, Portugal, Spain, Sweden, Switzerland, and the UK. These countries should start implementing changes to their energy policies to achieve effective energy use.

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Convergence of Inflationary Shocks: Evidence from the Caribbean

Cited by 4 publications

References 53 publications

Does Middle Income Trap Exist?: Evidence From Emerging Economies: E7 Countries for 1969-2015

Does Middle Income Trap Exist?: Evidence From Emerging Economies: E7 Countries for 1969-2015

What Do Demand and Supply Shocks Say About Caribbean Monetary Integration?

Convergence of Energy Intensity in OECD Countries

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