Luintel (2000) studies the behavior of real exchange rates (relative to the US dollar) using monthly data obtained from the black markets for foreign exchange of eight Asian developing countries. The sample period is 1958:1-1989:6. The data is available from the Journal of Applied Econometrics data archives.

(a) Plot this real exchange rate data for each country, i.e., replicate Fig. 1 of (Luintel, 2000).

(b) Replicate Table III of (Luintel, 2000). This performs ADF unit root tests on the real exchange rate for each country separately.

(c) Perform the panel unit root tests on the real exchange rate for these 8 countries. Compare with Table IV of (Luintel, 2000). What do you conclude?