Testing for structural change in panel data: GDP growth, consumption growth, and productivity growth

In this paper we first estimate the growth rates of real per capita GDP, real per capita Consumption, and Productivity (real GDP per worker) for the following panels of countries: (1) OPEC countries, (2) industrialized countries, and (3) based on geographic location. We then test for a structural change in the growth rates for each group and also attempt to identify the change point for each group. If there is a significant change, then the growth rates are estimated before and after the break for comparison. It is found that industrial countries, in general, experienced slowdowns in growth in the early 1970s, whereas less developed countries also experienced slowdowns in growth, but the timing of the slowdowns was in the mid to late 1970s.