SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 
 

References (39)

Beta

 


 



A Panel Unit Root and Panel Cointegration Test of the Complementarity Hypothesis in the Mexican Case, 1960-2001

Miguel D. Ramirez
Trinity College


August 2006

Yale University Economic Growth Center Discussion Paper No. 942

Abstract:     
Using panel data, this paper tests whether public and private capital have a positive and significant effect on aggregate output and labor productivity for Mexico during the 1960-2001 period. The richer information set made possible by the sectorial data enables this study to utilize the methodologically sound group-mean Fully Modified Ordinary Least Squares (FMOLS) procedure developed by Pedroni to generate consistent estimates of the relevant panel variables in the cointegrated production (labor productivity) function. The results suggest that, in the long run, changes in the stocks of public and private capital and the economically active population (EAP) have a positive and economically significant effect on output (and labor productivity). The period is also broken down into two sub-periods: 1960-1981 (state-led industrialization) and 1982-2001 (neoliberal model). The estimate for the public capital variables clearly shows that it had a relatively more important economic effect during the earlier state-led period.

Keywords: Fully modified ordinary least squares (FMOLS), panel unit roots, panel cointegration test, complementarity hypothesis, Mexican labor productivity

JEL Classifications: O10, O50, O40

Working Paper Series

Date posted: August 16, 2006 ; Last revised: August 23, 2006

Suggested Citation

Ramirez, Miguel D. , A Panel Unit Root and Panel Cointegration Test of the Complementarity Hypothesis in the Mexican Case, 1960-2001 (August 2006). Yale University Economic Growth Center Discussion Paper No. 942. Available at SSRN: http://ssrn.com/abstract=924384


Export to: Export Citation What's this?

Contact Information

Miguel D. Ramirez (Contact Author)
Trinity College ( email )
300 Summit Street
Hartford, CT 06106
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 997
Downloads: 240
Download Rank: 38,431
References: 39

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apollo3b in 1.203 seconds.