A Short Note on the Application of Chow Test of Structural Break in US GDP

Luitel, Hari S.; Mahar, Gerry J.

doi:10.5539/ibr.v8n10p112

Cited by 9 publications

(2 citation statements)

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“…In econometrics, the Chow test is most commonly used in time series analysis to test for the presence of a structural break. In macroeconomics, a structural break occurs when there is an unexpected shift in the data of a time series (Luitel and Mahar, 2015). For the purpose of this analysis, we broke the trend of Nigeria's gross domestic product to two periods, 1983-1999 (the military period) and 1999-2018 (the civilian period).…”

Section: Methodology and Model Specificationmentioning

confidence: 99%

Estimating the Gross Domestic Product of Nigeria During Military and Civilian Regimes: A Chow Test

Abiola

Adefabi²

2021

ACE

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Gross domestic product is the commonest economic vari- able that is used to measure economic performance, either for intertemporal or international comparison. Nigeria as a country has been ruled since independence by two sets of regimes: the military and the civilian. Arguments were and still are concerned with which of the two regimes favoured the country economically. The study therefore estimates the gross domestic product of Nigeria using Chow test. The essence of Chow test is to determine if there was structural break from the point the country fully began civilian dis- pensation from the previous military regime. Using both the F statistic and the Chow test, the results show that there was indeed structural break between the military regime and the civilian regime. This result was further confirmed by the Cusum Square test that shows that the overall model was unstable before the correction. The results further show that out of five components of aggregate demand, four of the variables have coefficients higher during the civilian than the military regime. The study therefore concluded that civilian rule is better economically than military rule in Nigeria. It was recommended that politicians and politi- cal office holders should act within the ambit of the law to sustain the democracy the country is currently enjoying.

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Section: Methodology and Model Specificationmentioning

confidence: 99%

Estimating the Gross Domestic Product of Nigeria During Military and Civilian Regimes: A Chow Test

Abiola

Adefabi²

2021

ACE

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“…Sadat and Akhter (2014) conducted the Chow test to see structural break on agricultural production of Bangladesh and indicate a break on multiple crops. Luitel and Mahar (2015) provided evidence of structural break in the US GDP data, which were reported from two different sources of data reporting system. Structural break time on Ethiopian GDP was also conducted by Allaro (2018) using time series data, suggesting a shift in the country’s economy in 2003.…”

Section: Methodsmentioning

confidence: 99%

Impact of Global Financial Crisis on Indian Handicrafts Exports: A Breakpoint Analysis

Jamir

2020

Global Business Review

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After the global economic downturn in 2007–2008, India’s export of principal commodities such as ores and minerals, engineering goods, projects goods and handicrafts products showed insignificant growth rate. The handicrafts sector has been given focal attention in the study due to its worrying insignificant growth and to exploit opportunities for exporters in the global market. This article, in an attempt to examine structural changes in exports of handicrafts product, performed the Chow breakpoint test by setting a break-up year to see if there has been a break in demand. This study contemplates and reflects how Indian handicrafts sector has surpassed its reputation among the diverse consumers in the global market after the global economic crisis and how government interventions have liberated the sector from middling growth to become a major contributor to world consumption. To make the subject more content and lucid to understand, this study has thoroughly accrued, reviewed and analysed several reports and trade data, and it culminates with some policy implication and suggestions to policymakers and entrepreneurs.

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Aher

2023

Statistische Und Mathematische Methoden in Der Wirtschaft

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A Short Note on the Application of Chow Test of Structural Break in US GDP

Cited by 9 publications

References 10 publications

Estimating the Gross Domestic Product of Nigeria During Military and Civilian Regimes: A Chow Test

Estimating the Gross Domestic Product of Nigeria During Military and Civilian Regimes: A Chow Test

Impact of Global Financial Crisis on Indian Handicrafts Exports: A Breakpoint Analysis

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