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Examining unit root properties of macro-economic time series has become a necessary pre-requisite for establishing order of integration. The study used conventional unit root tests that indicate level stationarity or non-stationarity using annual data for Pakistan. Perron (1989) and Zivot and Andrews (1991) tests failed to reject unit root hypothesis even after the inclusion of structural break. Results showed that all variables witnessed the presence of structural break during 1970s. Lumsdaine and Papell (1997) test results after incorporating multiple structural breaks indicate M3, exports and saving show trend stationarity. The study concludes that shocks in economy have permanent effect on the long run behaviour of these variables and implications for economic growth.

Ghulam Yahya Khan, Muhsin Bashir, Salik Mehboob. (2019) Structural Breaks and Unit Roots in Selected Macroeconomic Series: Evidence from Pakistan, Paradigms , Vol 13, Issue 2.
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