Does globalization promote real output? Evidence from quantile cointegration regression

This study examines the non-linear cointegration relationship between real output and KOF indices of globalization (overall index and three main sub-indices) by employing the advanced quantile method. Based on using the annual data of G7 countries, our empirical results provide strong evidence that the cointegrating coefficients follow the time-varying process. Our findings imply that most of these long-run relationships are influenced by potential shocks over time rather than maintaining a constant effect consistently. Overall, the contributions of this study not only stress the importance of quantile property in the cointegration models, but also provide the viewpoint of a long-run effect that overall and three-dimension globalizations act as engines of real output.

Full-text available in .pdf


Comments do not require moderator approval but this will only last as long as everyone plays fair

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s