Question
using eviews answer this q for me You have data on real GDP for Mexico and the USA. A priori, would you expect the two-time
using eviews answer this q for me You have data on real GDP for Mexico and the USA. A priori, would you expect the two-time series to be cointegrated? Why? What does trade theory have to say about the relationship between the two? Data gives quarterly data on real GDP for Mexico and the USA for the quarterly period 1980- I to 2000-III quarters, for a total 107 observations.11 Both series are standardized to value 100 in 2000. a) Test whether the Mexico and USA GDP time series are cointegrated. Explain the tests you use. b) Estimate the long-run and short-run equations. Explain your results. c) If the two-time series are not cointegrated, does that mean there is no
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